Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 13 - Capital Budgeting Decisions - Questions - Page 606: 13-6

Answer

Net present value is the difference between the present value of an investment project’s cash inflows and the present value of its cash outflows. The net present value can be negative when the project’s return is less than the discount rate.

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