Interpretation The

Konior Interpretation The net present value is very important for the valuation of fixed asset investment, despite its limitations in regard to unforeseen circumstances or exceptional market. If value is greater than zero, the project is profitable, considering the minimum value of return for investment. A company usually compare different alternatives to see if a project will or not. Usually the alternative with the highest NPV is usually the best for the institution, but need not always be so. There are times when a company chooses a project with an NPV lower due to various reasons such as might be the image he brings to the company for strategic or other reasons at the time of interest to that entity.