question archive What should the project manager do if it is determined that the net present value is negative, but the internal rate of return is less than the required rate of return? Select one: a
What should the project manager do if it is determined that the net present value is negative, but the internal rate of return is less than the required rate of return? Select one: a
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What should the project manager do if it is determined that the net present value is negative, but the internal rate of return is less than the required rate of return?
Select one:
a. Calculate the profitability index
b. Decrease the required rate of return
c. Increase the required rate of return
d. Reject the project
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Answer:
Since the Projects Net Present value is Negative, Project is not able to provide minimum rate of return required on cost of capital or Projects internal rate of return will not be equal to Required rate of return.
Hence project should be rejected.
Option D)
