The chief financial officer of five star food distributors has asked you to evaluate the building of a new warehouse. as an astute student of business you explain that the best way to evaluate the project is to use this common method adds the present value of all of the estimated future cash flows; then, it subtracts the initial costs of the investment to determine whether the proposed project is a good idea.

The answer is net present value.

It is commonly used in capital budgeting  a projected investment or project to analyze its profitability. A positive net value means that the earning from the project exceeds the anticipated cost while a negative NPV means a result of net loss.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?