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Question
What is net present value?
 Question Submitted By :: Guest
I also faced this Question!!     Rank Answer Posted By  
 
  Re: What is net present value?
Answer
# 1
value of future csh flow in present
 
Is This Answer Correct ?    1 Yes 0 No
Viplaw
 
  Re: What is net present value?
Answer
# 2
net present value is Present value of cashoutflow = present 
value of cashinflow..
ie value of investment made muust be equal to value of 
future cash inflows in present terms
 
Is This Answer Correct ?    1 Yes 0 No
Sushma
 
 
 
  Re: What is net present value?
Answer
# 3
The difference between present outflow and future inflow.
 
Is This Answer Correct ?    0 Yes 0 No
Guest
 
  Re: What is net present value?
Answer
# 4
the difference between present outflow of cash and expected 
future cash inflow
 
Is This Answer Correct ?    1 Yes 0 No
Mani Kandan
 
  Re: What is net present value?
Answer
# 5
NPV = Present Value of cash inflows - Present Value of cash 
outflows.
 
Is This Answer Correct ?    0 Yes 0 No
Chandrasekhar Hota
 
  Re: What is net present value?
Answer
# 6
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 ?    1 Yes 0 No
Sridhar
 
  Re: What is net present value?
Answer
# 7
its refers to the difference between present value of cash 
inflows and cash outflows.
 
Is This Answer Correct ?    0 Yes 0 No
Guest
 
  Re: What is net present value?
Answer
# 8
In long term planning decision for investment and their 
financing,net present value is being calculated..
for this we need to know the future value of cashflows by 
summing up the present value of cashflows per year and 
deducting the same from the cashoutflows.
 
Is This Answer Correct ?    1 Yes 0 No
Nitya
 
  Re: What is net present value?
Answer
# 9
it is the difference between present value of inflows and 
present values of outflows i.e. the discounted value 
calculated by using the irr
 
Is This Answer Correct ?    1 Yes 0 No
Abhijit K
 
  Re: What is net present value?
Answer
# 10
NPV is the present value of the future Cash inflows
 
Is This Answer Correct ?    0 Yes 0 No
Alok Jalan
 
  Re: What is net present value?
Answer
# 11
NPV is an approach used in capital budgeting where the 
present value of cash inflows is subtracted by the present 
value of cash outflows. NPV is used to analyze the 
profitability of an investment or project.

NPV analysis is sensitive to the reliability of future cash 
inflows that an investment or project will yield
 
Is This Answer Correct ?    0 Yes 0 No
Alok Jalan
 
  Re: What is net present value?
Answer
# 12
Difference between the intial investment and the present 
value of the future cash inflows.
 
Is This Answer Correct ?    0 Yes 0 No
Abhishek
 
  Re: What is net present value?
Answer
# 13
net present value is show this year financial activities and
cash outflows&in flows
 
Is This Answer Correct ?    0 Yes 0 No
Prasannakumar
 
  Re: What is net present value?
Answer
# 14
Net Present Value is the Difference between the PV of Cash 
inflows and the PV of Cash outflow. The NPV is the 
technique that takes into account the Time Value of Money. 
NPV is a capital budgeting technique to check the 
feasibility / viability of a project. If NPV is equal to 
zero or greater than Zero(NPV is Positive)than the project 
is considered to be viable otherwise not feasible.
 
Is This Answer Correct ?    0 Yes 0 No
Mehraj Wani
 

 
 
 
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