Asked by Shreyanth varghese on Sep 23, 2024
If the interest is 5%,should the firm undertake the investment?
A) Yes,since NPV=0
B) Yes,since NPV<0
C) Yes,since NPV>0
D) No,since NPV=0
Net Present Value
A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.
Interest Rate
The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
- Acquire knowledge on the concept of Net Present Value (NPV) and how to calculate it.
- Compute the current worth of monetary inflows resulting from an investment.
Learning Objectives
- Acquire knowledge on the concept of Net Present Value (NPV) and how to calculate it.
- Compute the current worth of monetary inflows resulting from an investment.