charlottesmith saysNovember 17, 2024 at 8:20 pmThe initial cost is $180,000 not $140,000Log in to Reply
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)
charlottesmith says
The initial cost is $180,000 not $140,000
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)