Answer Posted / ben c
Slight correction on Karthik K:
t - the time of the cash flow, whereas t(now) = 0
...
If NPV > 1 the investment would add value to the firm.
the project may be accepted.
If NPV < 1 the investment would subtract value from the
firm.
If NPV = 1 the investment would neither gain nor lose value
for the firm
| Is This Answer Correct ? | 4 Yes | 1 No |
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