Net present value and its use on the markets
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constantino
Apprentice
Joined: 11 Apr 2006
Posts: 6
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 Posted: 06/04/08 - 08:37 Post subject: |
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| Hi. Is there anyone here who can tell me more about the Net Present Value and about the way in which it is used? I have been told that this is one of the most reliable ways of working out whether or not a certain project is viable or not. Is that right? |
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valentino
Apprentice
Joined: 10 Sep 2007
Posts: 2
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| Posted: 07/03/08 - 23:14 Post subject: |
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| Yes, you have been told correctly. Almost anyone undertaking some project will also apply the NPV or Net Present Value as one of the most important parameters. If the calculation shows that there is in fact a negative Net Present Value, then the project has to be abandoned as there will not be an adequate cash flow. |
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