Financial Analysis

Financial Analysis

Financial Analysis

Answer # 3

Net Present Value is used to give a net benefit of project in terms currency which conveys true shareholder value of the firm as it tells actual increase in shareholder wealth in terms of dollars. Net present value acceptation criterion is based on when it will give positive results. Every project is acceptable on the basis of NPV which gives more than zero NPV value. Results with positive NPV are acceptable as it conveys that value of the firm will increase. Net present value is calculated through discounting future cash flows from a project by reducing ...