First Mention Cash Inflow for 40 years

than Find PV

PV = 1/(1+Discount Percent)^N

N= Number of Years

Then Multiply the Cash inflow of each year to Pv of each year

that will be discounted PV

Take total of discounted pv and minus it from original investment

if value comes in (+) approve the project otherwise not

From India , Pune

than Find PV

PV = 1/(1+Discount Percent)^N

N= Number of Years

Then Multiply the Cash inflow of each year to Pv of each year

that will be discounted PV

Take total of discounted pv and minus it from original investment

if value comes in (+) approve the project otherwise not

From India , Pune

on your calculator

enter 1/1.10 and press equal sign button for 40 times.

then press the GT button, you'll get 9.7790507

now multiply it with your principle amout i.e. 60,00,000

the net present value for this is 5,86,74,304.20/-

From India, Delhi

enter 1/1.10 and press equal sign button for 40 times.

then press the GT button, you'll get 9.7790507

now multiply it with your principle amout i.e. 60,00,000

the net present value for this is 5,86,74,304.20/-

From India, Delhi

An organization has to take many decisions regarding the expansion of business and investment. In such cases, the organization will take the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

Formula for NPV

NPV = (Cash flows)/( 1+r)i

i- Initial Investment

Cash flows= Cash flows in the time period

r = Discount rate

i = time period

NPV takes into consideration the time value of money. The time value of money simply means that a rupee today is of more value today than it will be tomorrow.

From India,

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

Formula for NPV

NPV = (Cash flows)/( 1+r)i

i- Initial Investment

Cash flows= Cash flows in the time period

r = Discount rate

i = time period

NPV takes into consideration the time value of money. The time value of money simply means that a rupee today is of more value today than it will be tomorrow.

From India,