Two investment opportunities have positive net present value s Investment As net present value amounts to $40,000 while Bs is only $30,000 Does this mean that A is the better investment opportunity Explain ...

The higher net present value does not necessarily imply the better ...

Two investment opportunities have positive net present value s. Investment As net present value amounts to $40,000

Question:

Two investment opportunities have positive s. Investment A’s amounts to $40,000 while B’s is only $30,000. Does this mean that A is the better investment opportunity? Explain.

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...