An analysis of a proposal by the net present value method indicates that the present value of future cash inflows is less than the amount to be invested Which of the following statements best describes the results of this analysis ? The proposal is undesirable , and the rate of return expected from the proposal is less than the minimum rate used for the analysis . The proposal is desirable , and the rate of return expected from the proposal is less than the minimum rate used for the analysis The proposal is desirable , and the rate of return expected from the proposal exceeds the minimum rate used for the analysis . The proposal is undesirable , and the rate of return expected from the proposal exceeds the minimum rate used for the analysis .

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...
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An analysis of a proposal by the net present value method indicates that the present value of future cash inflows is less than the amount to be invested Which of the following statements best describes the results of this analysis ?


The proposal is undesirable , and the rate of return expected from the proposal is less than the minimum rate used for the analysis .

The proposal is desirable , and the rate of return expected from the proposal is less than the minimum rate used for the analysis

The proposal is desirable , and the rate of return expected from the proposal exceeds the minimum rate used for the analysis .

The proposal is undesirable , and the rate of return expected from the proposal exceeds the minimum rate used for the analysis .

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