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The Net Present Value (NPV) - Assignment Example

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The Net Present Value (NPV)

Therefore, discounting gives us the present value of money that is consequently useful in determining the net present value of any given project.
d) Approximately 25% discount rate gives a zero NPV. This rate is the Internal Rate of Return and rates below this give a positive NPV hence showing the viability of a project. On the other hand, rates above 25% give a negative NPV and such projects should not be undertaken.
This model could be extended by adding the effect of the energy bill on an individual’s disposable income. The higher the bill, the higher the cost implications on the individual’s net disposable income.
A Decision Support System (DSS) is a computer-based information system that is used in organisations to assist in making decisions. A DSS is an interactive computerized system that supports the decision-making activities of decision makers using technology, documents, data and knowledge to complete their tasks.
The 2012 London Olympics involved a lot of logistical arrangements that the organisers had to consider in order for the games to be a success. One aspect of the games that had to be carefully planned out was transport. Given the number of people that flocked the country and the city of London in particular, the transport infrastructure had to be well laid out so that there was order in the city. The road network, public transport and the effects of disrupting transport for businesses and other services had to be of particular interest to the organisers of the games.
Additional or new resources have to be deployed in the areas related to incident detection and also the DSS for network managers. The transport legacy after the games should be of three types. First and foremost is the physical infrastructure that would be made to enhance the rail and road networks and vehicle fleets. There are also the enhancements to the operations and systems by designing and deploying state of the art techniques in order to detect ...Show more

Summary

Therefore, the present value of the cash flows expected is more than the present value of the initial cash outlay incurred at the beginning.
ii) Due to time value of money, the value of money…
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