Net Present Value
Net Present Value - The current net worth of a project.
Net Present Value Formula |
| \(\large{ NPV = \frac{ V }{ \left(1 \;+\; IR\right)^t } }\) |
| Symbol |
| \(\large{ NPV }\) = net present value |
| \(\large{ IR }\) = inflation rate |
| \(\large{ t }\) = time period |
| \(\large{ V }\) = value of all the benefits |
