Positive and Negative NPV projects
When the management team considers what projects to continue with, there are positive NPV projects and negative NPV projects. Based on the readings for this week, what are the differences between these two projects? What are some problems with the IRR methodology compared to the NPV methodology?
Your post should be at least 250 words and APA formatted.
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When the management team considers what projects to continue with, there are positive NPV projects and negative NPV projects. Based on the readings for this week, what are the differences between these two projects?
In Positive NPV project, the expected return from an investment is again to the firm while in a negative NPV project, the expected return from an investment is a loss to the firm. In a positive NPV project, we accept the investment proposal while in negative NPV we reject the investment proposal.
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