A project with a negative Net Present Value (NPV) should always be rejected, regardless of other factors.
False
True
The correct answer is False. While a negative NPV typically indicates that a project is not financially viable, it should not be the sole factor in project selection. Other considerations may include:
While NPV is a crucial financial metric, project managers should consider a holistic view of the project's potential impact on the organization. The decision to pursue or reject a project should be based on a comprehensive analysis that includes both quantitative and qualitative factors.
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