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    capital budgeting process the meaning of positive NPV

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    What opinions might shareholders have on selecting projects using the NPV? I mean what would they base their opinion on?
    Can the shareholder be anyone in or out of a company who has stock?
    What might happen to a management team that persistently selects negative NPV projects. How can i explain this?

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    What opinions might shareholders have on selecting projects using the NPV? I mean what would they base their opinion on?

    NPV gives the dollar amount, in present dollars, of investment choices. So, big investments can give big dollars but small returns. Some small projects can give a big return (in percent) but small dollars. Also, NPV doesn't give you a sense of cash flow timing (only PV of the flows), the reinvestment options ...

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    This solution explains the ideas presented in everyday language suitable for a novice to intermediate. Examples are given.

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