Net Present Value
This is an old revision of this page, as edited by Tash (talk | contribs) at 19:46, September 10, 2007. It may differ significantly from current revision.
Net Present Value is a method to estimate the current value of future cash flows. In its simplest form, Net Present Value applies a discount rate to a future cash flow number and the product is the Net Present Value.
The discount rate may have many components; Internal Rate of Return (IRR), Cost of Capital, Cost of Debt, Risk, and so on.