Cheap Credit Doesn’t Create Economic Growth – It Makes Us Poorer
Net Present Value (NPV) is a popular decision-making criteria used by firms to make key, crucial choices about how to allocate resources across an economy. Net Present Value forecasts temporally discount future cash flows to their present value to check whether a project creates value. If a project has an NPV greater than zero, it creates value. On the other hand, if a project has an NPV less than zero, the project loses value.