DCF:Net Present Value Method
  Objective:to focus decision makers on the initial investment amount that is required to purchase or invest in a capital asset that will yield returns in an amount > return on a management‘s designated hurdle rate.
  Basis of Evaluation:NPV requires managers to *uate the $ amount of return rather than % of return(for IRR)or years to recover principle(for payback methods)as a basis for screening investments.
  Formula:
  NPV=Discounted cash flow–Investment
  Conclusion:NPV > 0,meaning PVFCF>initial cash outflow,then make investment.

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