Your coworker just heard that senior management had

Reference no: EM13621090

Your coworker just heard that senior management had rejected the department's latest proposed project. Although the Net Present Value of the first 5 years' cash flow is a positive $2.3 million, the project's overall Net Cash Flow is negative. Your coworker states to you that senior management is making a huge mistake to give up something that will provide a $2.3 million cash flow! How would you explain to your coworker the correct way to interpret Net Present Value and Net Cash Flow data?

Reference no: EM13621090

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