The net present value (NPV) method is based on the discounting of expected future cash flows of an investment project.
More specifically, it states that the present value of the project‟s inflows (or benefits) must exceed the present value of its
outflows (or costs) for it project is to be selected. The cash flow stream includes all the payments and receipts associated
with the investment project during its economic life, and it should be discounted at the opportunity cost of capital, which
should reflect the risk of the project and the financing mix (Damodaran, 2001).