Net present value (NPV) (HL)

IB Business Management: Net present value (NPV) (HL)

Net present value (NPV) is a method of investment appraisal that calculates the real value (rather than the absolute value) of an investment project by discounting (adjusting) the actual value of money received in the future.The discount rate is a figure used to reduce the future value of money. It is used to establish the present value of cash that is yet to be received by the business. Refer to the table below for...


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