Superior method of evaluating the cash flows from project

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Why is NPV considered a superior method of evaluating the cash flows from a project? Suppose the NPV for a project's cash flows is computed to be $2,500. What does this number represent with respect to the firm's shareholders?

Reference no: EM131074574

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Superior method of evaluating the cash flows from project : Describe how NPV is calculated, and describe the information this measure provides about a sequence of cash flows. What is the NPV criterion decision rule? Why is NPV considered a superior method of evaluating the cash flows from a project?

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