1. Comment on the following statement: Under no conditions should the investment decision be made simultaneously with...

Question:

1. Comment on the following statement: “Under no conditions should the investment decision be made simultaneously with the financing decision.”
2. If an investment does not fit with an organization’s strategic plan, it is probably not a good idea, even if the is positive.” Under what conditions would this be a true statement? When would it be false?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...