0 Sj123Intermediate Asked: March 6, 20212021-03-06T22:42:30+05:30 2021-03-06T22:42:30+05:30In: CFA Inv Foundation Prog What Is net present Value Concept . Explain In easy Value 0 Share Sorry, you do not have permission to answer to this question. 2 Answers Oldest Famous Jain The Official Nerd https://www.linkedin.com/in/famous-jain 2021-03-07T08:59:25+05:30Added an answer on March 7, 2021 at 8:59 am Understand simply it as , “future mei jo ane wala hai , uska abhi kya value hai , uss project ka investment deduct krne k baad “ Uday_97 Advanced 2021-06-07T00:23:01+05:30Added an answer on June 7, 2021 at 12:23 am This answer was edited. u invest =100 ……..(a) payoff : 1st year=20 ; 2nd year =40 ; your req rate of return =8% amount u wil be getting –pull 20 and 40 to today’s value i.e. 20/(1.08) and 40/(1.08)^2……(b) now just substract what u got as payoff from what u invested net present value = (b)-(a)
Understand simply it as , “future mei jo ane wala hai , uska abhi kya value hai , uss project ka investment deduct krne k baad “
u invest =100 ……..(a)
payoff : 1st year=20 ; 2nd year =40 ; your req rate of return =8%
amount u wil be getting –pull 20 and 40 to today’s value i.e. 20/(1.08) and 40/(1.08)^2……(b)
now just substract what u got as payoff from what u invested
net present value = (b)-(a)