Discounted Cash Flow (NVP)

Last updated about 1 year ago
6 questions
1

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"

1

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?

1

Give 2 benefits of using NVP

1

Give one drawback of using NVP and explain it