Question
You are evaluating two projects. One has a negative NPV of $4 million, and other has a negative NPV of $5 million. Which project will
You are evaluating two projects. One has a negative NPV of $4 million, and other has a negative NPV of $5 million. Which project will you choose, and why?
The one with the NPV of -$4 million because the company will lose less.
Neither. A negative NPV means the cash outflows are greater than the cash inflows.
Either one is acceptable
None of the answers is correct.
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
