Choosing between Investments Using a Comparison of NPVs
If I have 2 investments and I compare the NPV of both. Which one I prefer? With the biggest NPV?
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Welcome to the Net Present Value (NPV) best practices. The topic being discussed here is: "Choosing between Investments Using a Comparison of NPVs".
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Abraham Ogbeide, Gambia


Choose the Project with the Most Positive NPV
Yes, if both investments have positive NPVs, then the idea is to take the one with the highest positive NPV. But if both have negative NPV then do none of both. Why? The background of this, is to maximise the shareholders wealth.

