Which of the Following Statements Is Most Likely to Be

Multiple Choice

Which of the following statements is most likely to be correct for a project in which the NPV is negative when based on flows from net income?

A) NPV may turn positive after adjusting for depreciation expense.
B) NPV should be calculated with pretax cash flows.
C) NPV has probably been overestimated.
D) The project should be rejected or abandoned.