Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

A company is considering two investment projects. Both have an initial cost of $50,000. One project has even cash flows and the other uneven cash flows. Which evaluation method would be most appropriate

Sagot :

ayfat23

Answer:

Net present value

Explanation:

From the question we are informed about A company who is considering two investment projects. Both have an initial cost of $50,000. One project has even cash flows and the other uneven cash flows. The appropriate evaluation method would be Net present value.

Net present value (NPV) can be regarded as difference that exist between the present cash outflows value as well as present cash inflows value in particular period of time. NPV can be engaged in capital budgeting as well as investment planning so that the profitability of a projected investment as well as a project can be analysed.

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.