Editing Net present value (section)

===Advantages===
The NPV includes all relevant time and cash flows for the project by considering the [[time value of money]], which is consistent with the goal of wealth maximization by creating the highest wealth for shareholders.

The NPV formula accounts for [[cash flow]] timing patterns and size differences for each project, and provides an easy, unambiguous dollar value comparison of different investment options.<ref name=":0">{{Cite book |last=Serfas |first=Sebastian |title=Cognitive Biases in the Capital Investment Context |publisher=Cabler Verlag |year=2011 |isbn=9783834926432 |location=Germany |pages=30–255 |language=en-au}}</ref><ref name=":1">{{Cite web |title=Net Present Value (NPV): What It Means and Steps to Calculate It |url=https://www.investopedia.com/terms/n/npv.asp |access-date=2023-04-21 |website=Investopedia |language=en}}</ref>

The NPV can be easily calculated using modern spreadsheets, under the assumption that the discount rate and future cash flows are known. For a firm considering investing in multiple projects, the NPV has the benefit of being additive. That is, the NPVs of different projects may be aggregated to calculate the highest wealth creation, based on the available capital that can be invested by a firm.<ref>{{Cite web |title=Some Alternative Investment Rules |url=https://webpage.pace.edu/pviswanath/notes/corpfin/invrules.html |access-date=2023-04-21 |website=webpage.pace.edu}}</ref>