McqMate
| Q. |
Why are projects with negative net present values (NPVs) unacceptable to a firm? |
| A. | Returns lower than the cost of capital result in firm failure. |
| B. | Returns with negative NPVs cause an equal profit ratio. |
| C. | Returns with negative NPVs are acceptable to a firm |
| D. | Returns lower than the cost of capital result in higher profit ratios |
| Answer» A. Returns lower than the cost of capital result in firm failure. | |
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