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Alby Ltd. is a cement manufacturing plant. Alby calculates the NPV of buying a new cement mixer. He turns down the capital investment. What is the most likely reason? A. he does not have time to shop around
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Alby Ltd. is a cement manufacturing plant. Alby calculates the NPV of buying a new cement mixer. He turns down the capital investment. What is the most likely reason?

A.
he does not have time to shop around
B.
his employees don’t know how to operate a cement mixer
C.
the Net Present Value of the project is negative
D.
there are no reliable vendors for cement mixers

User Maximus S
by
5.0k points

2 Answers

6 votes
A he does not have time to shop around
User Dabuki
by
5.2k points
3 votes

Answer: C

Step-by-step explanation:

Since he turned it down, he must have less money to use with it. There would be no other reason for him to turn it down. Therefore, the project value is negative.

User Natenho
by
5.1k points
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