In capital budgeting, a negative NPV means the project’s present value of cash inflows is less than the investment cost. This indicates that the project destroys value, resulting in negative economic value added, and therefore should not be accepted.... Read More
In capital budgeting, a negative NPV means the project’s present value of cash inflows is less than the investment cost. This indicates that the project destroys value, resulting in negative economic value added, and therefore should not be accepted.
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