answersLogoWhite

0

How do you calculate net present value?

Updated: 8/21/2019
User Avatar

Wiki User

6y ago

Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: How do you calculate net present value?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How do you calculate rate of return?

by using the Net present value calculations.


How do you calculate internal return rate?

by using the Net present value calculations.


Should you consider depreciation in NPV?

Net present value calculation only considers the cash amounts and depreciation is not cash amount rather the related assets is counted in for net present value calculation. Depreciation is deducted once from net income to calculate the tax amount but after that it is added back.


How firms can learn about net present value NPV from the stock market?

by using the basic net present value


What does the NPV function do in Excel?

You use the NPV function. Start by specifying the rate and follow it with a list of future values that you want to help determine your result. So you could have something like this:=NPV(5%,10,20)


How did calculate the Net calorific value?

calculate the Net calorific value by It's 4.2 calories per gram, multiply the number of grams by 4.2.


What is normally used as the discount rate in the net present value method?

the net present value as determined by normal discount rate is 10%


Fullform of NPV?

Net Present Value


Does present values have value adding up property?

Net present value method has value adding-up property


What is the net present value of Google?

$187.04 billion


What is the meaning of the term net present value?

Net Present Value (NPV) means the difference between the present value of the future cash flows from an investment and the amount of investment.Present value of the expected cash flows is computed by discounting them at the required rate of return. For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000. The amount of investment ($1,000 in this example) is deducted from this figure to arrive at net present value which here is zero ($1,000-$1,000).A zero net present value means the project repays original investment plus the required rate of return. A positive net present value means a better return, and a negative net present value means a worse return.


What does the term npv stand for?

The most common use of the acronym NPV is to refer to net present value. Net present value is the sum of the present values of individual cash flows of the same entity.