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comment: NPV (Net Present Value called) in economic terms is the total, cumulative of the entire life cycle of the project, presented in the current value of money, the net benefit (profit) from the implementation of the investment project. The advantage of this method is to take into account the variable time value of money and recognition in the evaluation of the profitability of the net benefit of the entire project life cycle. Disadvantages of this method is difficult to choose the appropriate discount rate and the assumption of a constant discount rate.
the answer is NPV ≤0
IF the project has NPV<0 . It means that the outlays for the project are more than the inflows of the projects so project would be unprofitalble.
b) NPV =0,
c) NPV <0
both are unprofitable.
b. NPV=0, shows that the disdounted cash-inflows from poject are exactly equal to discounted cash out-flows.
c. NPV<0 shows negative discountd cash flows.
NPV <0 is unprofitable.
NPV =0 is a unprofitable venture as there is an element of opportunity cost assigned to the investment you made,
hence both the above options are unprofitable.
NPV> outlays is not a proper option as NPV is arrived after deducting the initial investment from the discounted future cash inlfows.
Both answers (B) and (C):
NPV =0 or NPV <0
NPV=0
NPV<0
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