answersLogoWhite

0


Best Answer

Net Present Value. This is the value of an investment in today's dollars. The theory behind this is that a dollar today is worth more than a dollar tomorrow because of the interest that can be earned.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Full form of NPV
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Does lower WACC equal lower NPV?

no it increases npv


What happens to NPV when cost of capital increased?

NPV decreases when the cost of capital is increased.


The NPV assumes cash flows are reinvested at the?

The NPV assumes cash flows are reinvested at the: A. real rate of return B. IRR C. cost of capital D. NPV


Does the npv of future cash flows increase or decrease as the discount rate increases?

NPV decreases with increasing discount rates.


Why is the NPV approach often regarded to be superior to the IRR method?

Why is the NPV approach often regarded to be superior to the IRR method?


The weighted scoring approach avoid the drawbacks of the NPV approach?

The weighted scoring approach avoid the drawbacks of the NPV approach?


IRR VS NPV?

IRR: Internal rate return NPV: Net present value Both are measure of the viability of a project(s) You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.


What happens to NPV if the cost of capital changes?

The cost of capital is inversely proportional to the NPV. As capital costs increase (i.e. the interest rate increases), NPV decreases. As capital costs decrease (i.e. the interest rate decreases), NPV increases. You can see the relationship in the following equation: NPV = a * ((1+r)^y - 1)/(r * (1+r)^y) Where: NPV = Net Present Value (The present value of a future amount, before interest earnings/charges) a = Amount received per year y = Number of years r = Present rate of return


Fullform of NPV?

Net Present Value


How do you create NPV in 2006 Suzlon Company?

Suppose i have selected Suzlon company so how can i create NPV in 2006 and how to analysis annual Report of 2006.


Why the NPV of a relatively long term project is more sensitive to changes in the cost of capital than is the NPV of a short term project?

due to the uncertainty


In what year did Nuveen Virginia Premium Income Municipal Fund - NPV - have its IPO?

Nuveen Virginia Premium Income Municipal Fund (NPV)had its IPO in 1993.