Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
Question
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Chapter 12, Problem 12.19P

a)

Summary Introduction

To calculate: The present value of cash inflows for each project.

Introduction:

The variation between the present value of the cash outflows and the cash inflows is the net present value.

Selecting the best set of project that will maximize owners profit is known as net present value approach.

b)

Summary Introduction

To determine: The best optimal set of projects.

Introduction:

The variation between the present value of the cash outflows and the cash inflows is the net present value.

Selecting the best set of project that will maximize owners profit is known as net present value approach.

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