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)


97

Random Words:

1. Brand of cigar used for rolling a fat bluntwith the potentiol of burning for an hour or more. Is a actual tobacco leaf. You can catch m..
1. Also known as "Yakuza" Japanese Mobsters Man... those Yakuza's activities are so secretive..
1. The foreshortening of an event, particularly a sporting contest. The rain at Wimbledon adjinticated the tennis unfortunately resulting ..