--%>

Decision rule using net present value

Describe the decision rule for accepting or rejecting proposed projects while using net present value?
While using the net present value decision rule any project along with a net present value greater than or equal to zero would be acceptable. Any project along with a negative net present value would be discarded.

   Related Questions in Finance Basics

  • Q : Changes in equilibrium GDP caused by

    Normal 0 false false

  • Q : Describe formula to figure out

    Normal 0 false false

  • Q : Explain Encumbrance Encumbrance : The

    Encumbrance: The commitment of all or portion of an appropriation for future expenses. The Encumbrances symbolize commitments associated to unfilled purchase orders or unfulfilled contracts. Exceptional encumbrances are recognized as budgetary expense

  • Q : Creative destruction Normal 0 false

    Normal 0 false false

  • Q : What is an Investment Management

    Investment Management: It has two general definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, a financial advisor or services company gives inve

  • Q : What is Appropriation Schedule

    Appropriation Schedule: The detail of an appropriation (example, in the Budget Act), exhibiting the distribution of the appropriation to each of the class, programs, or projects thereof.

  • Q : Define Current Year Current Year (CY):

    Current Year (CY): It is a term utilized in budgeting and accounting to designate the operations of the current fiscal year in contrast to past or future periods.

  • Q : What are Federal Funds Federal Funds :

    Federal Funds: For legal basis budgeting purposes, categorization of funds into which the money received in trust from an agency of the federal government will be deposited and finished by a state department in accordance with state and/or federal rul

  • Q : Describe sunk cost Describe sunk cost?

    Describe sunk cost? Is it relevant while evaluating a proposed capital budgeting project? Describe. A sunk cost is a cash flow which has already occurred, or that will take place, whether a project is accepted or discarded. It is irrelevant wh

  • Q : Alternative combinations of the two

    Assume you won $15 on a Lotto Canada ticket at the local 7-Eleven & decided to spend all the winnings on bags of peanuts and candy bars. The cost of candy bars is $.75 and the cost of peanuts is $1.50. Build a table illustrating the alternative combinatio