HELLO NEED HELP WITH IT
This is covered in detail in Chapter 10 of our notes. Where are you having problems?
Not sure what your specific problems are with this topic.Net present value calculations are based on the fact that,in general terms,people would prefer to consume goods or services now rather than later and if they are prevented from consuming goods or services now they will want compensation in the form of the ability to consume more goods and services in future.Thus future currency amounts are worth less than current currency amounts and are therefore discounted using a given rate of interest to make them comparable.
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