Overview

if the net present value of project or investments,is negative it means the expected rate of return that will be earned on it is less than the discount rate (required rate of return) this doesn't necessarily mean the will lose money. it may very well generate accounting profit, but since the rate on return generated is less than the discount rate,it is considered to destroy value. if the Npv is positive,it creates value,

Tags
Share
Reviews Add a review
No reviews yet

More From RDA Consultant

Browse our top rated business templates. See All
Projection plan Template
486
1
from this financial model you will learn how to forecast project revenues to organize the company's  financial statements and schedules…
Contracting and manufacturing Company financial plan and analyses
562
0
From this financial model you will be able to control and manage and plan any contracting company with any project…
Vertical and Horizontal analysis
518
50
Horizontal analysis help analysts to see what has been driving accompany financial performance over a number of years .it enables…
Regression analysis
522
75
From this case study you will learn how financial analyst use regression analyses for forecasting the sales volume regression is…
DuPont Analysis
542
48
A DuPont analysis is used to evaluate the component parts of company's return on equity (ROE) this allows an investor…
Altman z score formula(Excel)
500
35
if the result of altman z score formula <1.81 then the excel will give you Explanation of altman ratio as…