[200 words] FIN 405: How is the NPV rule related to the goal of maximizing shareholder wealth, and under what conditions would you expect the NPV and IRR rules to return the same accept or reject decision?

Uncategorized

I’m trying to learn for my Business class and I’m stuck. Can you help?

How is the NPV rule related to the goal of maximizing shareholder wealth, and under what conditions would you expect the NPV and IRR rules to return the same accept or reject decision?

Be sure to respond to at least one of your classmates’ posts.

Below is the classmates post to respond to-

” The NPV (Net Present Value) rule is a theory that states that individuals who are financial managers and investors must only put money into opportunities that will provide a positive net present value. Net present value is the difference between present value of cash inflow and present value of cash outflow for a particular period of time. When it comes to maximizing shareholder wealth the NPV rule is directly related. By only investing in projects that provide a positive NPV the shareholders are taking less risk and their wealth is being maximized. If the IRR is deemed acceptable and the NPV is acceptable then the decision to go ahead with the project will reached. If the IRR is not reached and the NPV is not reached then the project will be rejected.”

Requirements: 150 – 200 words | Discussion | 1 pages, Double spaced

Continue to order Get a quote

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.