Discounted Cash Flow (NVP)
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Last updated about 1 year ago
6 questions
1
Discounted cash flow takes account of the "time value of money" in order to: _________
Discounted cash flow takes account of the "time value of money" in order to: _________
1
Why might it be important to take into account the "time value of money"
Why might it be important to take into account the "time value of money"
1
How is present value calculated?
How is present value calculated?
1
What is the present value is the cash flow is 20,000 and the discount factor is 0.9?
What is the present value is the cash flow is 20,000 and the discount factor is 0.9?
1
Give 2 benefits of using NVP
Give 2 benefits of using NVP
1
Give one drawback of using NVP and explain it
Give one drawback of using NVP and explain it