Corporate Finance

Good Student
Posts: 25
Joined: Wed Dec 09, 2015 9:29 am

Corporate Finance

Postby rishabhhurkat » Mon Dec 21, 2015 4:13 am

Please explain the below statement in context of Capital Budgeting Method.

"The NPV is estimated added value from investing in the project; therefore, this added value should be reflected in co.s stock price."

Finance Junkie
Posts: 704
Joined: Wed Apr 09, 2014 6:28 am

Re: Corporate Finance

Postby edupristine » Tue Dec 22, 2015 7:18 am

Please tell me the source of this statement.
But it’s a usage of Capital budgeting methods. NPV and IRR are preferred over other methods. NPV is the added value(estimated) in the project from the investment which should be shown in company’s stock price.

Return to “CFA Level I”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.