1. When using the net present value method, if the net present value of a project is negative, then the ________.
the project should be rejected
the project should be accepted
the project should be recalculated for missing cash inflows
None of these
2. Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen?
the investment with the lowest net present value
the investment with a net present value equal to zero
the investment with a negative net present value
the investment with the largest net present value