Describe how net present value is calculated

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Describe how Net present value is calculated and how the information this measure provides about a sequence of cash flows. What is the NPV criterion rule and why is NPV considered to be a superior method of evaluating the cash flows from a project? Suppose the NPV for project cash flows is computed to be $2500, what does this number represent with respect to the firm's shareholders?

Reference no: EM13731585

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