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Net present value is negative when:

 

 

a. the present value of cash inflows is greater than the present value of cash outflows.

 

b. the present value of cash outflows is greater than the present value of cash inflows.

 

c. the future value of cash inflows is greater than the present value of cash outflows.

 

d. the present value of cash outflows is greater than the future value of cash outflows.

Project Finance Cash Flow Forecasting Financial Reporting Financial Systems Feasibility Studies
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/08
Upvote (0) Views (34) Followers (3) Answers (3) Report Question
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Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is B. PV of outflows is greater than the PV of inflows.

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option B is the right answer.

Phyo Maung Mg

the future value of cash inflows is greater than the present value of cash outflows.

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