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Unprofitable investment is an investment, for which: a) NPV> 0, b) NPV = 0, c) NPV <0, d) NPV> outlays.

comment: NPV (Net Present Value called) in economic terms is the total, cumulative of the entire life cycle of the project, presented in the current value of money, the net benefit (profit) from the implementation of the investment project. The advantage of this method is to take into account the variable time value of money and recognition in the evaluation of the profitability of the net benefit of the entire project life cycle. Disadvantages of this method is difficult to choose the appropriate discount rate and the assumption of a constant discount rate.

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Question ajoutée par Tomasz Modrzejewski , Programmer , Company Skraw-Mech
Date de publication: 2014/08/01
Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

the answer is NPV ≤0

 

Anayatullah Tahir
par Anayatullah Tahir , Finance Manager , Etqan Projects

IF the project has NPV<0 . It means that the outlays for the project are more than the inflows of the projects so project would be unprofitalble.

Chris Joseph
par Chris Joseph , Division Finance & Operations Officer , Signet Ring Group

NPV<0 because in simple terms , if0 is greater than NPV then using common sense one should be able to understand it will not be giving you any benefit and in this case any profit

b) NPV =0,

c) NPV <0

 

 

 

both are unprofitable.

 

b. NPV=0, shows that the disdounted cash-inflows from poject are exactly equal to discounted cash out-flows.

c. NPV<0 shows negative discountd cash flows.

Jaya Prakash Goulikar
par Jaya Prakash Goulikar , FINANCIAL CONSULTANT , ACORN SOLUTIONS INC.

NPV <0 is unprofitable.

NPV =0 is a unprofitable venture as there is an element of opportunity cost assigned to the investment you made,

hence both the above options are unprofitable.

NPV> outlays is not a proper option as NPV is arrived after deducting the initial investment from the discounted future cash inlfows.

Mohamed Esam Mohamed Kamel
par Mohamed Esam Mohamed Kamel , Financial Analyst , Egyptian Water & Wastewater Regulatory Agency (EWRA)

Both answers (B) and (C):

NPV =0 or NPV <0

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

NPV <0

Asad zaman
par Asad zaman , Audit/Finance , Rafaqat Baber and co

NPV=0

NPV<0

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

B+C

Khalid Noor
par Khalid Noor , Accounting Manager , FedEx

NPV=<0

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