ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
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Question
Chapter 27, Problem 5Q
To determine
NPV is the method of evaluating the annual cash flow with respect to the present value factors. Under this method, the initial investment amount needs to be deducted from the total discounted annual net cash flow to arrive at the NPV. This method helps the management in taking investment-related decisions.
: The decision rules of NPV.
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