Question

The net present value method Group of answer choices all of the above. is consistent with the goal of shareholder wealth maximization. recognizes the time value of money. uses all of a project's cash flows.

Answer 1

all of the above

Step-by-step explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable. This ensures that shareholder wealth is maximised

The NPV method uses discounted cash flows. so the time value of money is considered