When choosing among several investments,managers should pick the project with the highest net present value.

Question

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Net present value (NPV) is a popular investment appraisal technique that considers the difference between the present value of cash inflows and the present value of cash outflows over a project's life. An investment with a higher NPV is considered better than one with a lower NPV because it generates more value for the company. Therefore, managers should choose the project with the highest NPV among several investment options.

When Choosing Among Several Investments,managers Should Pick the Project with the Highest