Why is the NPV method considered by finance specialists to be the best method for capital...

60.1K

Verified Solution

Question

Finance

Why is the NPV method considered by finance specialists to bethe best method for capital budgeting? What does the NPV of aproject tell managers?

Answer & Explanation Solved by verified expert
4.0 Ratings (541 Votes)
NPV is Net Present Value It is the excess of present value of cash inflows over present value of cash outflows NPV Present value of cash inflows Present value of cash outflows NPV    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students