Is the net present value method a technique for evaluating proposed capital investments?
by 
Elsa_1985
ANSWERS: 1
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The answer to that would be "Yes and No". The "Yes" part refers to that it is actually being used by people for that purpose. The "No" part refers to the fact that the NPV methodology is hugelly inaccurate, up to the point that it can deliver an illogical result (in some extreme cases). The answer that it delivers is conceptually closer to a ratio that to the result one would expect from accounting methods (i.e. dividends payable). Personally, I would discourage its use for that purpose, especially since a new accurate methodology exists, called C2BII, that can accuratelly calculate the end result.
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