Question
The general rule is that firms should adopt positive NPV projects, and reject negative NPV projects. But what if a project has a $0 NPV,
The general rule is that firms should adopt positive NPV projects, and reject negative NPV projects.
But what if a project has a $0 NPV, should they accept the project or reject it?Explain.
Read the article on "The fundamental problem with using NPV in project evaluation".
The author presents three key reasons on why managers prefer using IRR over NPV.Of these three, which do you feel is his best argument and why?
Watch the three videos on estimating cash flows.Which of the three (Initial Investment,Operating Cash Flow, and Terminal Cash Flow) do you think is the most difficult to estimate in practice?
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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
