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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › PV of future cashflow and NPV
PV of future cashflow and NPV
Hi John,
i just have some little confusion in understanding those two terms. Can i say that PV of future cashflow is the discounted value of future receipts which do not take into consideration of any investment/initial investment ?
and for NPV as
difference between discounted value of future receipts(of a project) and the investment made for that particular project ?
Yes – correct.
