charlottesmith says November 17, 2024 at 8:20 pm The initial cost is $180,000 not $140,000 Log in to Reply
shawaiz says June 12, 2020 at 11:25 am Hi , I want to understand how NPV is derived what is the equation can please advise Log in to Reply
chimporera says February 9, 2023 at 9:22 am 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. Log in to Reply
Scott98 says July 21, 2023 at 1:28 pm NPV minus Discounted Cash Inflows = Initial Investment It is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)
The initial cost is $180,000 not $140,000
Hi ,
I want to understand how NPV is derived
what is the equation can please advise
It is to the nearest $100
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.
NPV minus Discounted Cash Inflows = Initial Investment
It is re-arranging the origional NPV calculation (NPV = Initial cash outflow + Discounted cash inflows)