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Topic: Miscellaneous
Number of pages / Number of words: 8 / 2095
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Projects with a positive NPV are expected to increase the value of the firm. Therefore, the Net Present Value decision rule specifies that all independent projects with a positive NPV should be accepted. When choosing among mutually exclusive projects, the project with the largest (positive) NPV should be selected...


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When choosing among mutually exclusive projects, the project with the largest (positive) NPV should be selected. The NPV is calculated as the present value of the project's cash inflows minus the present value of the project's cash outflows.

For example, the asset manager of a property management firm must evaluate the overall dollar value of a lease transaction...


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