Question: What is net present value? Can it ever be negative? Explain. What types of purchases would be considered capital investments? Why is it important to

  1. What is net present value? Can it ever be negative? Explain.
  2. What types of purchases would be considered capital investments?
  3. Why is it important to compute the time value of money?
  4. What type of management decisions utilize the time value of money?State some real-world applications that require the use of the time value of money principle.

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