Describe the net present value method of evaluating capital investment proposals. What is its main advantage?
The net present value method evaluates a capital investment proposal by discounting its expected future cash flows to their present values and subtracting the amount of the initial investment from their sum. If the net present value is zero or above, the proposal can be accepted. The significant advantage of the net present value method is that it incorporates the time value of money into the analysis.
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Stockholders' equity
a. is usually equal to cash on hand b. includes paid-in capital and liabilities c. includes retained earnings and paid-in capital d. is shown on the income statement
Which of the following instances depict the tort of outrage?
A. A farmer's crops are set on fire by an unidentified miscreant. B. A gym teacher verbally abuses an overweight kid in every gym class and the kid suffers severe emotional distress. C. A cosmetics company uses Julia Roberts' image without her consent to depict her as its brand ambassador. D. A beverage-manufacturer claims that its competitor uses coffee beans of poor quality.
Variable costs per unit vary directly with levels of production
Indicate whether the statement is true or false
Consideration can be either a promise to do a certain act or the performance of the act itself
a. True b. False Indicate whether the statement is true or false