Choosing between Investments Using a Comparison of NPVs

      
			              Best Practices
			            
							              19

		            		Natasha, Greece
			            
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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						            	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.
				                
										              6

						            	Alec Hajinoff
Investor, United Kingdom
												
				                Remember to also Consider Options in NPV

													Careful: Did you consider options (expand/abandon) in your NPV calc?

If not, do so, because a lower NPV now may be a higher overall NPV with options included.
				                
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