Question
1. NPV According to the text, the NPV rule states that An investment should be accepted if the NPV is positive and rejected if it
1. NPV
According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker faced with a project with a zero NPV (or very close to zero) what would you do? Why?
2. FORECASTING ERROR (RISK)
What is a "forecasting error"? Why is it important to the analysis of capital expenditure projects?
Please number each of your answers. This is very important so that I understand which questions you are responding to.
Post answers as a single MS Word Attachment bySunday at 11:59 PM Eastern Time, U.S.
Assignment Grading Criteria:
Thoroughly answered all of the questions: 60 points possible
Spelling/Grammar at the college level: 20 points possible
References to course material using proper APA format: 20 points possible
Total: 100 points
Upload your assignment as a single document no later than 11:59 PM Eastern (US) on Sunday.
Essay-Week 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started