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  2. How Do I Calculate the Net Present Value (NPV) on ... - AOL

    www.aol.com/finance/calculate-net-present-value...

    Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

  3. Net present value - Wikipedia

    en.wikipedia.org/wiki/Net_present_value

    The present value of a cash flow depends on the interval of time between now and the cash flow because of the Time value of money (which includes the annual effective discount rate). It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans , investments , payouts from ...

  4. Present value - Wikipedia

    en.wikipedia.org/wiki/Present_value

    The cash flow for a period represents the net change in money of that period. [3] Calculating the net present value, , of a stream of cash flows consists of discounting each cash flow to the present, using the present value factor and the appropriate number of compounding periods, and combining these values. [1]

  5. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    NPV = net present value. and = net cash flow at time , including the initial value and final value , net of any other flows at the beginning and at the end respectively. (The initial value is treated as an inflow, and the final value as an outflow.)

  6. Capital budgeting - Wikipedia

    en.wikipedia.org/wiki/Capital_budgeting

    The internal rate of return (IRR) is the discount rate that gives a net present value (NPV) of zero. It is a widely used measure of investment efficiency. To maximize return, sort projects in order of IRR. Many projects have a simple cash flow structure, with a negative cash flow at the start, and subsequent cash flows are positive.

  7. Talk:Net present value - Wikipedia

    en.wikipedia.org/wiki/Talk:Net_present_value

    Consider the first sentence: "In finance, the net present value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity."

  8. Discounted cash flow - Wikipedia

    en.wikipedia.org/wiki/Discounted_cash_flow

    In discount cash flow analysis, all future cash flows are estimated and discounted by using cost of capital to give their present values (PVs). The sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value of the cash flows in question; [ 2 ] see aside.

  9. Valuation using discounted cash flows - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_discounted...

    In general, "Value of firm" represents the firm's enterprise value (i.e. its market value as distinct from market price); for corporate finance valuations, this represents the project's net present value or NPV. The second term represents the continuing value of future cash flows beyond the forecasting term; here applying a "perpetuity growth ...