Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#cfa-level-1 #corporate-finance #reading-36-cost-of-capital
NPV = Present value of inflows − Present value of outflows
If you want to change selection, open document below and click on "Move attachment"

2.3. Applying the Cost of Capital to Capital Budgeting and Security Valuation
between the present value of the cash inflows, discounted at the opportunity cost of capital applicable to the specific project, and the present value of the cash outflows, discounted using that same opportunity cost of capital: <span>NPV = Present value of inflows − Present value of outflows If an investment’s NPV is positive, the company should undertake the project. If we choose to use the company’s WACC in the calculation of the NPV of a project, we are assu


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details



Discussion

Do you want to join discussion? Click here to log in or create user.