What is Net Present Value?
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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)
Random Words:
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n. 1. remnants of poonsquirts
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A short but sexy man with giant guns who coaches sex. Usually known for his country accent, creepy old-mannish manner, and obsession wit..