It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will be unprofitable. This concept is the basis of theNet Present Value Rule, which says that you should only engage in projects with a positive net present value. Excel NPV funct...
To calculate the NPV of a constant annuity (that is an investment that pays equal cash flows for a set number of periods), you figure the present value of the investment and subtract this amount from the initial cost. The present value of an annuity is the payment amount per period times...
How would I compare 3 projects - two have an NPV = $500,000 (over 9 years mixed stream of inflows and 20 years annuity, respectively) and one which is a lump of $490,000 cash right now? ... 16 1 comments NPV of $1 Million for a Project Means What If a NPV of one project...