Hi ,
I want to understand how NPV is derived
what is the equation can please advise
M
Mpho·
It is to the nearest $100
C
chimporera·
I am lost on how they derived the initial cost of capital @$140 000. I have managed to calculate the NPVs for the 3 years but deriving at the initial outlay became complicated for me.
S
Scott·
NPV minus Discounted Cash Inflows = Initial Investment
It is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)
I want to understand how NPV is derived
what is the equation can please advise
It is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)