Maximizing growth: How firms can optimize investments for success
The goal of the chapter is to show how firms can use net present value to make smart investment decisions. If the net present value of a new investment is positive, it's best for the firm to grow as much as possible. When the net present value is zero, the firm is in the best position and should keep its investment policy steady. But if the net present value is negative, the firm will lose money by investing and should only invest a little.