 Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning  Survey of Accounting (Accounting I)
Capital Investment Analysis. 8CDQ

# NPV: Net present value (NPV) is the method to evaluate the project feasibility. This method calculates the present value of cash inflows and outflows, and then calculates the net present value of the investment. A project should be accepted if it has a positive NPV. The formula to calculate the NPV is as follows: N P V = P r e s e n t v a l u e o f c a s h i n f l o w s – P r e s e n t v a l u e o f c a s h o u t f l o w s To Indicate: The meaning of the Net present value amount

Question Chapter 15, Problem 8CDQ
To determine

## Concept Introduction:NPV:Net present value (NPV) is the method to evaluate the project feasibility. This method calculates the present value of cash inflows and outflows, and then calculates the net present value of the investment. A project should be accepted if it has a positive NPV. The formula to calculate the NPV is as follows:  NPV = Present value of cash inflows – Present value of cash out flowsTo Indicate:The meaning of the Net present value amount

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8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning    