[...] of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
[...] of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
[...] of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
Answer
An NPV
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a projec
Original toplevel document
Subject 3. Investment Decision Criteria 3;
Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company.
<span>The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved.
Decision rules:
The higher the NPV, the better. Reject if NPV is less than or equal to 0.
NPV measures the dollar benefit of the project to shareh
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.