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. Obama America, in the tradition of a true shyster Obama will try to tell all the right lies, and kiss all the right asses in order to co..
1. n the animated television series The Simpsons, S.N.U.H. stands for Springfieldians for Nonviolence, Understanding, and Helping, although..
1. 1. (adj) In reference to a badass situation, individual, or object. 2. (noun) A person who epitomizes the art of "badassery" o..