LESSON OBJECTIVE
Assessment Criteria AC 4.3 Use financial tools for decision making Below are questions pertaining to lesson 14. Please ensure to answer each question correctly. 1. How can the outcome from a net present value impact company decisions? 2. How can the outcome from a discounted cash flow impact company decisions? 3. How can the outcome from an internal rates of return impact company decisions?
3 Comments
Carlene Johnson
12/4/2016 07:22:41 am
1. the NPV helps managers decide whether or not new projects are financially viable. if the NPV is positive the project is expected to be beneficial however a negative NPV said the opposite. companies make their decision based on this.
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shadea fulwood
12/4/2016 08:53:03 pm
1. How can the outcome from a net present value impact company decisions?
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Sashae Dillworth
12/10/2016 08:57:24 pm
1. Net present value (NPV) is very useful in valuing investment opportunities and calculating budget decision. Even so, using the NPV its greatest impact on companies is its sensitivity to discounted rates. A small increase or decrease in the discounted rate will greatly affect the NPV end result.
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