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Leno4ka [110]
2 years ago
10

An organization should consider only projects with a positive ________ if financial value is a key criterion for project selecti

on.
Business
1 answer:
Amanda [17]2 years ago
3 0

Net Present Value (NPV).

A positive NPV means the return from a project exceeds the cost of capital return available by investing the capital elsewhere

More about NPV :

The difference between the current value of cash inflows and withdrawals over a period of time is known as net present value (NPV). To evaluate the profitability of a proposed investment or project, NPV is used in capital budgeting and investment planning. Calculations to determine the present value of a future stream of payments yield the NPV.

NPV compares similar investment options by taking the time value of money into account. Any project or investment with a negative net present value (NPV) should be avoided since the NPV depends on a discount rate that may be calculated from the cost of the capital needed to invest.

Learn more about NPV here:

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