--%>
Assignment Help - homework help

NPV capital budgeting framework

Specify intuition behind NPV capital budgeting framework?

E

Expert

Verified

NPV framework is technique of discounted cash flow.  This methodology compares the present value of all cash inflows related with proposed project versus the present value of all project outflows. In case inflows are enough in order to cover all the operating costs and financing costs, project adds wealth to shareholders.

   Related Questions in Financial Accounting

  • Q : Measures to avoid financial crisis In

    In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

    		•
  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

    		•
  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

    		•
  • Q : Great Society programs What are the

    What are the goals of “Great Society” programs?

    		•
  • Q : Bretton Woods’s system programmed to

    Comment over the below proposition: “One can say that Bretton Woods’s system was programmed to the eventual demise”. 

    		•
  • Q : Evaluated Receipt Settlement What do

    What do you mean by Evaluated Receipt Settlement?

    		•
  • Q : Calculating Average Cost 1 You're

    1 You're trying to save to buy a new $200,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 2 Although appealing

    		•
  • Q : Goals of Social Democrats What were the

    What were the goals of Social Democrats? What did Anarchists want?

    		•
  • Q : Financial hedging of firm’s operating

    List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?

    		•
  • Q : Contingent exposure and its benefits

    Describe the contingent exposure and also discuss some of the benefits of using currency options in order to maintain this type of currency exposure.

    		•