What does an npv of zero mean if you were a decision-maker


Essay

1. NPV

According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker faced with a project with a zero NPV (or very close to zero) what would you do? Why?

2. FORECASTING ERROR (RISK)

What is a "forecasting error"? Why is it important to the analysis of capital expenditure projects?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What does an npv of zero mean if you were a decision-maker
Reference No:- TGS02331829

Expected delivery within 24 Hours