npv

This topic has 2 replies, 2 voices, and was last updated 9 years ago by John Moffat.

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September 23, 2016 at 3:38 pm #341461
firelion28
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hi john

when we are getting an inflow of $10,000 in year 1, we have to discount it because we usually pay an interest on it , and suppose we get a present value of $9990

my question is – what is the present value, is it the present value of that 10,000 in year 1. I am sort of lost with what exactly is the present value ?
September 23, 2016 at 4:00 pm #341470
firelion28
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And why do we do we discount to get the present value?
September 23, 2016 at 10:15 pm #341518
John Moffat
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You need to watch my lectures on interest and on investment appraisal – I cannot type them all out here 🙂
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