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If a Capital Budgeting Project Has a Negative Net Present

Question 25

Multiple Choice

If a capital budgeting project has a negative net present value (NPV) ,


A) its internal rate of return (IRR) is also negative.
B) its discounted payback period (DPB) is greater than the project's economic life.
C) the firm should invest in the project as long as the initial investment outlay is low.
D) its traditional payback period (PB) is greater than the firm's expected payback period.
E) its internal rate of return (IRR) is greater than the discount rate that would be used to compute the project's NPV.

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