Chapter Outline
6.1 Why Use Net Present Value?6.2 The Payback Period Rule6.3 The Discounted Payback Period Rule6.4 The Average Accounting Return6.5 The Internal Rate of Return6.6 Problems with the IRR Approach6.7 The Profitability Index6.8 The Practice of Capital Budgeting6.9 Summary and Conclusions
6.1 Why Use Net Present Value?
Accepting positive NPV projects benefits shareholders.NPV uses cash flowsNPV uses all the cash flows of the projectNPV discounts the cash flows properly
The Net Present ...