Discussion Board: Thoughts on the Merits of the NPV Rule A

Compose a post on your thoughts on The Merits of Net Present Value Rule. Why is this rule superior? Why is that so crucial in Finance? What are some obvious pitfalls you can think of that may occur when NPV is not used as the main rule for capital budgeting? What are some obvious drawbacks to using the other rules? How is risk assessment linked to the choice of capital budgeting criteria? Please also post an article (journal article or one in the popular press) that you believe relates to the topic. Please also compose a paragraph explaining the linkage and identify an equation we are using that you believe would be used in the context of the article.

Answer rating: 100% (QA)

The Merits of the Net Present Value Rule A Critical Discussion The Net Present Value NPV rule is a central pillar of capital budgeting guiding investment decisions by considering the time value of mon... View the full answer