أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Net Present Value, it is the method to compare the value of money today in relation to its value in the future.
If your ROI (Return On Investment) projects a figure above the future value of the potentially diminished value of today, then you would proceed with the investment, but if your returns (even with positive projection) are below the diminished value then it would not be advisable to invest or to deposit.
net Present Value
where:
Ct = net cash inflow during the period
Co= initial investment
r = discount rate, and
t = number of time periods
