Net present value, Financial Management

What is Net Present Value? Describe please.

Posted Date: 2/14/2013 12:54:02 AM | Location : United States





Definition of ''Net Present Value - NPV''

The variation between the present value of cash inflows and the present value of cash outflows. NPV is employed in capital budgeting to analyze the profitability of an investment or project.

NPV (net present value) analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. 

Posted by Damon | Posted Date: 2/14/2013 12:54:35 AM


Related Discussions:- Net present value, Assignment Help, Ask Question on Net present value, Get Answer, Expert's Help, Net present value Discussions

Write discussion on Net present value
Your posts are moderated
Related Questions
Question 1: "Good Governance is an ideal. To ensure sustainable development, actions must be taken to work towards this ideal with the aim of making it a reality." With ref

State about the Audit plan contents 1. Report requirements and terms of reference. 2. A review of business and financial position, reviewing why changes had occurred in curr

Rate duration can be defined as the sensitivity of the change in value to a particular change in spot rate. Every point in a spot rate curve has a rate dura

The Australian skiing industry operates out of a very narrow seasonal base-approximately three months in a good season. In a good year, providers of accommodation, ski hire and tow

ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annua

Q. Computation of the Value of the firm? The argument given by MM in favour of their hypothesis is that whatever increase in the value of the firm results from the payment of d

Bond Indenture An indenture builds the formal conditions of a lending relationship between a borrower and a lender. It is a written record, and it outlines most important func


Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard.  If not, reject it.  While ranking the projects, projec

Why is the replacement value of assets method not usually used to value complete businesses? The replacement value of assets process is not often applied to complete business v