True or false When the net present value is negative, the present value index will be greater than 1?
True or false When the net present value is negative, the present value index will be greater than 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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True or false
When the
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Step 1
Net present value:
It is the technique used for analyzing investment in long term capital projects. It is calculated as the difference between the present value of cash inflow and cash outflows.
If NPV is positive accept the project.
If NPV is negative reject the project.
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