When evaluating a project, the general rule is that if the NPV is positive, you...
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Finance
When evaluating a project, the general rule is that if the NPV is positive, you should accept the project; if it is negative, you would reject the project. From the reading this week, we also learned that other methods of evaluation should be considered when looking at a project. With these concepts in mind, address the following questions:
-Is the NPV the best option for evaluating a project? Why or why not? If not, what method would be better for project evaluation?
-If a project does not meet the metrices set by a company for acceptance (positive NPV, meeting a hurdle rate, or acceptable payback period) are there still reasons why a project could be accepted? Argue your stance and provide an example to explain your reasoning.
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