Accepting a project with a negative npv


Question:

A firm takes on a project that would earn a return of 12 percent. If the appropriate cost of capital is also 12 percent, did the firm make the right decision. Explain. What is the impact on the firm if it accepts a project with a negative NPV?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Accepting a project with a negative npv
Reference No:- TGS02043713

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)