Why is the NPV generally considered to be the preferred method for evaluating new capital investment proposals?

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Why is the NPV generally considered to be the preferred method for evaluating new capital investment proposals? Describe the meaning of the NPV to a close relative who has no business background in terms they would understand.

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Financial Management Principles and Applications

ISBN: 978-0134417219

13th edition

Authors: Sheridan Titman, Arthur J. Keown, John H. Martin

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Question Posted: Apr 24, 2017 10:30 AM

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Why is the NPV generally considered to be the preferred method for evaluating new capital investment proposals?

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One of the primary goals of a corporation is to improve the wealth of its shareholders Since the NPV ...View the full answer

Financial Management Principles and Applications

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