Question

In: Finance

An investment with negative net present value is said to be ________. Group of answer choices...

An investment with negative net present value is said to be ________.

Group of answer choices

Attractive

Profitable

High yield.

Unattractive

Solutions

Expert Solution

NPV=Present value of inflows-Present value of outflows

where

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

Hence negative NPV means present value of inflows is less than present value of outflows which means that there would be value reduction for the company.

Hence the correct option is:

Unattractive

jeff jeffy answered 2 years ago
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