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. Noun also adjective by context 1. The illusion of higher social status provided by assuming the trappings, fashions, mannerisms, langua..
1. Like an Irish coffee but with blended Scotch whisky used instead of Irish whiskey. RECIPE FOR GAELIC COFFEE: Pour 35mls of a good S..
1. a cobby is a fairly organized, librarian type burnout. a cobby accepts the ways of the burnout not just as an enjoyable act, but as a l..