#
NET PRESENT VALUE (NPV)
**Topic: Net Present Value Calculation**
**Concept: ** Understand the concept of net present value (NPV)
and how it is used to determine the value of
future cash in today’s dollars.
In addition to calculating the
present value of future cash flows when
considering an investment project, it is also
critical to assess the net present value. The
net present value is simply the value of the
expected future returns of an investment minus
the value of expected future cost expressed in
today’s dollars.
**Objectives**
- Understand the concept of net present value
- Understand the factors that are used in the NPV formula
- Know how to use the NPV formula
- Understand arbitrage
- Discuss the use of PV tables
**Suggested
Grades:**
Ninth Grade -
Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education
- Business Education |