Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...
QUESTION: I’m trying to decide whether or not to invest a large amount of money in new technology that will lower our production costs. A newly-minted MBA I just hired has completed something he calls ...
A Net Present Value analysis is exactly the right way to assess a project that requires a cash outlay upfront to achieve lower costs going forward. Here’s what he is doing. The negative cash flow ...