Ask Question
13 December, 20:46

If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. True / False.

+2
Answers (1)
  1. 13 December, 21:12
    0
    True

    Explanation:

    Net present value is the present value of after tax cash flows less the amount invested.

    If there is a deficiency of the present value of future cash inflows over the amount to be invested, it means the NPV is negative and the project proposal should be rejected.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers