FREE Trial

1) Define the term net present value (NPV). What is each franchises NPV? (2) What is the...

Question:

1) Define the term net present value (NPV). What is each franchise’s NPV?
(2) What is the rationale behind the NPV method? According to NPV, which franchise or franchises should be accepted if they are independent? Mutually exclusive? 

(3) Would the NPVs change if the cost of capital changed?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (4 reviews)

1 Net Present Value NP V is a method of evaluating the financial value of a business or project by c...View the full answer


answer-question
Answered By
tutor-profile-image
DHRUV RAI
As a tutor, I have a strong hands-on experience in providing individualized instruction and support to students of all ages and ability levels. I have worked with students in both one-on-one and group settings, and I am skilled in creating engaging and effective lesson plans that meet the unique needs of each student. I am proficient in using a variety of teaching techniques and approaches, including problem-based learning, inquiry-based learning, and project-based learning. I also have experience in using technology, such as online learning platforms and educational software, to enhance the learning experience for my students. In addition to my teaching experience, I have also completed advanced coursework in the subjects that I tutor, including mathematics, science, and language arts. This has allowed me to stay up-to-date on the latest educational trends and best practices, and to provide my students with the most current and effective teaching methods. Overall, my hands-on experience and proficiency as a tutor have equipped me with the knowledge, skills, and expertise to help students achieve their academic goals and succeed in their studies.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Corporate Finance A Focused Approach

Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

See More Books
Question Posted:
See More Questions

Related Video

NPV stands for \"Net Present Value,\" which is a financial concept used to determine the value of an investment or project. It measures the difference between the present value of cash inflows and the present value of cash outflows over a given period of time, using a specific discount rate. To calculate the NPV of an investment, you need to first estimate the cash inflows and outflows associated with the investment, and then discount them back to their present values using a discount rate. The discount rate represents the cost of capital or the expected rate of return required by investors. The formula for calculating NPV is: NPV = sum of (cash inflows / (1 + discount rate)^t) - sum of (cash outflows / (1 + discount rate)^t) Where: Cash inflows: the expected cash received from the investment Cash outflows: the expected cash paid out for the investment Discount rate: the required rate of return or the cost of capital t: the time period in which the cash flow occurs If the NPV is positive, it means that the investment is expected to generate a return higher than the required rate of return or the cost of capital, and it may be considered a good investment. If the NPV is negative, it means that the investment is not expected to generate a return higher than the required rate of return or the cost of capital, and it may be considered a bad investment.

Students also viewed these Business questions

The Physics Of Atoms And Quanta Introduction To Experiments And Theory 6th Edition - ISBN: 3540672745 - Free Book