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Some prefer more risky projects than less risky projects. But some prefer less risky projects to...

Some prefer more risky projects than less risky projects. But some prefer less risky projects to those that are more risky.

-What explains this behavior?

- Why is it that projects that have negative net present values are sometimes undertaken?

Business   Economics   
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Answer #1

Some prefer more risky jobs and some prefer ess risky projects and this can be compared with that of Bulls and Bears with optimism and pesimissim at its levels respectively where people who take more risky projects are confident to make most out of it but people who tend to take less risky jobs intend to work on a project that definitely succeeds. The projects that have negative net present values are sometimes undertaken and this is all because of the fact that they believe there are certain production as well as marketing strategies that have to be reformed in the projects with which the net negative value will finally turn into net positive value on the whole.

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