The best-case of net present value (NPV) Introduction: Net present value (NPV) refers to the discounted value of the future cash flows at present. The company should accept the project, if the net present value is positive or greater than zero and vice-versa. If there are two mutually exclusive projects, then the company has to select the project that has the higher net present value.

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Chapter 11, Problem 6QP

Summary Introduction

To determine: The best-case of net present value (NPV)

Introduction:

Net present value (NPV) refers to the discounted value of the future cash flows at present. The company should accept the project, if the net present value is positive or greater than zero and vice-versa. If there are two mutually exclusive projects, then the company has to select the project that has the higher net present value.

Summary Introduction

To determine: The worst-case of net present value (NPV)

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