KLM Royal Dutch Airlines is considering an investment in new routes that should bring in significant revenues in the future. Which of the following will KLM most likely evaluate to determine the value of the investment?

Question

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Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, taking into account the time value of money. It calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time. For KLM Royal Dutch Airlines, evaluating the NPV of investing in new routes would help determine if the future revenues from these routes are worth the initial investment, making it a crucial factor in their decision-making process.

KLM Royal Dutch Airlines Is Considering an Investment in New