How does the net present value relate to value of the firm, Financial Management

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How does the net present value relate to the value of the firm?

The net present value is the dollar amount of the amend to the value of the firm if the project under consideration is accepted. 

 

 


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Q. Computation of Value of the Firm? Computation of Value of the Firm (V) & Overall Cost of Capital:- NI                    = EBIT - Interest = 50,000 - 20,000 = 30,000

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