shawaiz saysJune 12, 2020 at 11:25 amHi , I want to understand how NPV is derived what is the equation can please adviseLog in to Reply

chimporera saysFebruary 9, 2023 at 9:22 amI 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.Log in to Reply

Scott98 saysJuly 21, 2023 at 1:28 pmNPV minus Discounted Cash Inflows = Initial InvestmentIt is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)

shawaiz says

Hi ,

I want to understand how NPV is derived

what is the equation can please advise

Snorkies says

It is to the nearest $100

chimporera says

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.

Scott98 says

NPV minus Discounted Cash Inflows = Initial Investment

It is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)