Financial Management

Financial Management



Financial Management

Net Present Value

The present value method is one of the most widely used economic criteria in evaluating investment projects. It consists of determining equivalence at time 0 of future cash flows generated by a project and compare this equivalence with the initial outlay. When this equivalence is greater than the initial outlay, then it is recommended that the project is accepted.

Differences between Net Incremental Cash Flow and Net Present Value

Cash flow statements and net present value are two common financial tools used in business. However, there is a significant difference between a net incremental cash flow and ...