Concept
Version 8
Created by Boundless
Calculating the NPV
![Net Present Value (NPV) Formula](../../../../../../../../../figures.boundless-cdn.com/12223/full/3aa8e2769d0ab6b48a4c4bdfab.jpg)
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.
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