a $(1.)$ Define the ferm net present value $($NPV$)$ Whatis each fianchise sNPV$?$

To calculate the NPV$,$ we find the present value of the individual cash flows and find the sum of those discounted cash flows. This value represents the value the project add to shareholder wealth.

$(2.)$ What is the rationale behind the NPV method? According to NPV$,$ which franchise or franchises should be accepted if they are independent? Mutually exclusive?