Net Present Value - Synonym: present value
Sum of future cash flows / (1 + Discount rate)^n
Example calculation: A flow of 100 EUR due in 2 years and with a required annual return of 5% would have a present value of 100 / (1.05) ^ 2 = 90.70 EUR
Net Present Value - Synonym: present value
Sum of future cash flows / (1 + Discount rate)^n
Example calculation: A flow of 100 EUR due in 2 years and with a required annual return of 5% would have a present value of 100 / (1.05) ^ 2 = 90.70 EUR