a return on their investment that is competitive with other investment opportunities All cash flows need to be discounted to account for time value of money (One dollar today is worth more to me than one dollar in the future)
Investors will only take on project if discounted future revenues are large enough to provide a return on their investment that is competitive with other investment opportunities All cash flows need to be discounted to account for time value of money (One dollar today is worth more to me than one dollar in the future)