If the Net-Present Value of an Investment Is Negative,which of the Following

Multiple Choice

If the net-present value of an investment is negative,which of the following is true?

A) The negative amount represents the cash the company will lose if it makes the
Investment.
B) The negative amount represents the amount the price of the investment must decrease
Before the company would consider buying the operational asset.
C) The negative amount represents the difference between actual return and expected
Rate of return.
D) The negative amount represents the difference in the expected rate of return and the
Cost of capital.