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In finance theory, what is the most widely accepted goal of the firm? How does the net present value of a project relate to this goal?

   In finance theory, what is the most widely accepted goal of the firm? How does the net present value of a project relate to this goal?

Capital Budgeting: Financial Appraisal of Investment Projects

Capital Budgeting: Financial Appraisal of Investment Projects

Don Dayananda,… 1st Edition

Chapter 1, Problem 1

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This is often operationalized as maximizing the stock price of the company. The rationale behind this goal is that by focusing on increasing the value of the shareholders' investment, a firm ensures its growth, sustainability, and ability to generate profits over Show more…

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In finance theory, what is the most widely accepted goal of the firm? How does the net present value of a project relate to this goal?

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