Net Present Value Advantages and Disadvantages

Real Life Net Present Value (NPV) Example

While teaching a Corporate Finance class for MBA students at a local university, I was asked a question that underscored importance of the net present value concept. Although NPV might be considered a panacea, there are definitely some pros and cons.

Net present value is a method to put a dollar amount on future cash payments. It’s great if you win the lottery and want to determine whether to choose the lump sum payment or monthly option. Or wh...