Wednesday, 7 December 2016

ADVANTAGES OF NET PRESENT VALUE

Accurate method used to access business investment viability

It is measured for its long-term survival and its ability to have sustainable profits over a period of time.

Net Present Value uses discounted cash flow to accurately quantity the net benefits from a projects

The cash flows are the amounts and timings of the various investment costs and benefits. It is also brought into a common term, so that the net benefits can be quantified and be compared if necessary to competing investment oppotunities.

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