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new answers please Investment in any asset creates wealth if the discounted value of the future cash flows exceeds the up-front cost. This simply put

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new answers please

Investment in any asset creates wealth if the discounted value of the future cash flows exceeds the up-front cost. This simply put is the NPV idea that company managers and investors should only invest in projects or engage in transactions that have a positive net present value (NPV). They should avoid investing in projects that have a negative net present value. However, what about a case an example of a product like Tesla. The company which formed around 2009 was reporting a negative net income up until the third quarter of 2019. Do you think managers would be able to apply an investing decision based on NPV idea for such products? Discuss your thoughts

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