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10 July, 00:20

What is the minimum annual cash flow required to accept the project?

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  1. 10 July, 02:37
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    The minimum cash flow:

    "To accept the project, Present value of future cash flows, must be equal to Initial Investment, so that "net present value" of project is equal to zero".

    The company will likely to get increase and will be profitable if the NPV that is "Net present value" is "greater than zero".

    NPV rule states that, a company manager or an "investor can invest" the money in a project where the "net present value" is greater than zero. It is not recommended to invest in a project where the "net present value" stands negative.
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