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Net present value ( NPV ) Evaluating cash flows with the NPV method The net present value ( NPV ) rule is considered one of

Net present value (NPV)
Evaluating cash flows with the NPV method
The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions.
Consider this case:
Suppose Black Sheep Broadcasting Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,750,000. The project is expected to generate the following net cash flows:
\table[[Year,Cash Flow],[Year 1,$300,000
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