Answer Posted / sridhar
Net present value (NPV) is a standard method for the
financial appraisal of long-term projects. Used for capital
budgeting, and widely throughout economics, it measures the
excess or shortfall of cash flows, in present value (PV)
terms, once financing charges are met. By definition,
NPV = Present value of net cash flows
Where
t - the time of the cash flow
n - the total time of the project
r - the discount rate
Ct - the net cash flow (the amount of cash) at time t.
C0 - the capital outlay at the beginning of the investment
time ( t = 0 )
| Is This Answer Correct ? | 7 Yes | 0 No |
Post New Answer View All Answers
How can social media be used for marketing?
What are the hurdles you faced in past job?
Differentiate between P&L A/c and Balance Sheet?
What Are Various Functions Of Rbi?
Distinguish between private banks and nationalized banks.
What is an overdraft?
Define Public Expenditure?
what is your core comtetence
On what basis do banks offer loans?
What are the responsibilities of bill collectors?
What is the difference between balance sheet and the income statement?
Does leasing release the firm from bad investment?
Any idea to improve banking services?
What is the role of actuary analysts in investment?
What is the current repo rate?