Q. Use of which one of the common investment appraisal methods directly promotes wealth maximization?

A
accounting rate of return
B
internal rate of return
C
net present value
D
payback period
Solution:

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting to analyze the profitability of a projected investment or project.

Entri PDF Icon

Get Question Bank

Strengthen Your Practice with our comprehensive question bank.

Entri Contact Image

Get Expert Advice for Free: Register for Your Free Consultation Now!