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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.

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  1. 13 December, 21:12
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    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.
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Home » Business » 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.
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