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. A term describing a heavy technical item which no longer works and could easily be replaced. "My computer's a total paperweig..
1. A phrase used to minimize the damage after insulting someone. Often accompanied by "I didn't mean that" or "Just kid..
1. The uncircumsized penis of a caucasion male. When the foreskin is pulled back, the action resembles that of the well known Push Pop Cand..