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Howa conpany can reduce tax from accepting a negative NPV investment400wordsWhyreduce tax...Howa conpany can...

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Accounting

Howa conpany can reduce tax from accepting a negative NPV investment

400words

Whyreduce tax is one of reason an organization accept negative NPVinvestment ?

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3.7 Ratings (398 Votes)
Well A company can reduce tax from accpeting a negetive NPV investment as negetive NPV means there is no profit generated from the project infact negetive cash flow is generated from the project So if any project is not giving any profit then the compan will not have to pay any tax on loss    See Answer
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In: AccountingHowa conpany can reduce tax from accepting a negative NPV investment400wordsWhyreduce tax...Howa conpany can reduce tax from accepting a negative NPV investment400wordsWhyreduce tax is one of reason an organization accept negative NPVinvestment ?

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