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:

$\backslash$table$[[$Year$,$Cash Flow$],[$Year $1,$$$300,000$