Section outline

  • This section introduces the Net Present Value (NPV) and shows how managers can use the NPV to make sound investment decisions. The NPV is one of the most important tools in capital budgeting. It is therefore crucial that finance professionals know how to compute and interpret NPVs.

    • This section's reading assignment and review questions are listed below.

    • Reading: Net Present Value (NPV) Book
      Students must
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    • Quiz: Net Present Value (NPV)
      Students must
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      Receive a grade