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6 February, 03:32

Alby Ltd. is a cement manufacturing plant. Alby calculates the NPV of buying a new cement mixer. He turns down the capital investment. What is the most likely reason?

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  1. 6 February, 03:35
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    NPV stands for net present value, which refers to the amount of money that is invested today and how much it could potentially be worth in the future. If Alby Ldt. decided they did not want to invest after calculating the potential NPV, it's likely that the future value of the purchase would not be worth the investment.
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