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What is a npv

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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2016 Hello Sir

Please Tell me What is NPV

Rupesh Jain

Rupesh Jain (Expert)
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23 June 2016 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).

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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2016 Thanks Sir You Are to Good

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