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Fullform of NPV

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Anonymous

∙ 14y ago
Updated: 8/19/2019

Net Present Value

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∙ 14y ago
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Does lower WACC equal lower NPV?

no it increases npv


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NPV decreases when the cost of capital is increased.


The NPV assumes cash flows are reinvested at the?

The NPV assumes cash flows are reinvested at the: A. real rate of return B. IRR C. cost of capital D. NPV


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Why is the NPV approach often regarded to be superior to the IRR method?

Why is the NPV approach often regarded to be superior to the IRR method?


The weighted scoring approach avoid the drawbacks of the NPV approach?

The weighted scoring approach avoid the drawbacks of the NPV approach?


Does the npv of future cash flows increase or decrease as the discount rate increases?

NPV decreases with increasing discount rates.


IRR VS NPV?

IRR: Internal rate return NPV: Net present value Both are measure of the viability of a project(s) You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.

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