adspace


What is net present value?

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


Please Help Members By Posting Answers For Below Questions

Recently what award has been given to SBI?

1251


Who are the recent Padam Awards Winners?

1326


I want the sample question paper of po exam of sbi?

2077


Do you acquire any knowledge on Computers? Elaborate it.

1106


What are some of the most significant deals this bank has completed in the last 12 months?

1222


Where have you saved money, handled more with less or found other ways to cut cost or increase productivity?

1172


Tell us something about the 27th or latest public sector bank in india.

1147


Where is the market (for bonds/equities/FX) going?

1246


If given a chance to improve the economic situation of the country, what are the various initiatives you will take?

1186


Tell us something about yourself in one minute?

1161


Tell some of the projects you did in the past?

1145


What has the market been doing? Why? What do you think it will do in the coming 12 months?

1092


Iam an MBA student.I need guidance to prepare for AMAZON COMPANY. can u post papers to ammuprathyu@ymail.com

2833


Why do you want to join Axis bank ?

1414


what should be the recommendation of taxation in private company?

2081