If the NPV is negative, what should a company typically do?
If the NPV is negative, what should a company typically do?
اگر این پی وی منفی ہے، تو کمپنی کو عام طور پر کیا کرنا چاہیے؟
Explanation
If the NPV is negative, a company should typically reject the project.
As it indicates that the investment is expected to result in a loss or a return less than the cost of capital.
Rejection of the project allows the company to allocate resources to more profitable opportunities.