NPV Flashcards
1
Q
Definition
A
For a given investment the NPV reflects the present value of the future after tax cash flows minus the initial investment outlay.
2
Q
Invest if
A
NPV > 0
3
Q
Do not invest if the
A
NPV < 0
4
Q
It is sensitive to
A
Time, size of cash flows and the required rate of return
