Concept
Version 8
Created by Boundless
Calculating the NPV
Net Present Value (NPV) Formula
NPV is the sum of of the present values of all cash flows associated with a project. The business will receive regular payments, represented by variable R, for a period of time. This period of time is expressed in variable t. The payments are discounted using a selected interest rate, signified by the i variable.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources: