The NPV can be easily calculated using modern spreadsheets, under the assumption that the discount rate and future cash flows are known. For a firm considering investing in multiple projects, the NPV has the benefit of being additive. That is, the NPVs of different projects may be aggregated to calculate the highest wealth creation, based on the available capital that can be invested by a firm.
The NPV can be easily calculated using modern sp,readsheets under the assumption that the discount rate and future cash flows are known. For a firm considering investing in multiple projects, the NPV has the benefit of being additive. That is the NPVs of different projects may be aggregated to calculate the highest wealth creation, based on, the available capital that can be invested by a firm.