Net Present Value

What is Net Present Value?


1.

Money has a time value, net present value is future cashflows brought back to today's value against a discount factor (11% is standard), minus the initial investment. If the net present value of cumulative cashflows is positive, then the project should be accepted, unless a more profitable investment is also availiable.

To calculate the NPV of an investment, one must know the discount factor, cost of investment and expected incomes (based off accurate data)


0

Random Words:

1. Am extremely dense or useless person Barry said: I can't work another day with that 'Munkett' agian, he's a total p..
1. An Indian man who makes a woman forget all other lovers because of his ability in bed Once Mary had a Gandhi Cock she can never be with..
1. Getting really, really drunk. Amanda: "Are we going out tonight? I want to get off my pickle." See drunk, pissed, mashed, ti..