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Investment Decision And Cash Flows

Harris, Robert S.,...

Technical Note

Investment Decision And Cash Flows

Harris, Robert S.; Pringle, John

F-0915 | Published March 29, 1989 | 18 pages Technical Note

Collection: Darden School of Business

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A positive net present value (NPV) is a direct estimate of value creation for shareholders and is an operational way of carrying through on the strategy of trying to maximize shareholder wealth. To calculate NPV, however we need to estimate the cash costs and benefits of any decision at hand. In this note we discuss the evaluation of investment proposals.

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