A1 an electronic machine that is used for storing, organizing, and finding words, numbers, and pictures, for doing calculations, and for controlling other machines: a personal/home computer. All our customer orders are handled by computer. We've put all our records on computer. computer software/hardware.
Net present value is the sum of all discounted cash inflows and outflows. A discounted cash flow is equal to the cash flow divided by one plus the interest rate to the power of the period the cash flow occurs. The dollar value of the initial project cash outlay is a negative number already at present value.ominal Net Present Value. In the standard net present value calculation, the discount rate includes the effects of inflation. As an alternative, you can calculate net present value by converting the real cash flows to nominal cash flows and use a nominal discount rate. Both methods yield the same final number.
RELATED TERMS. 1  Net Present Value - NPV Net Present Value (NPV) is the difference between the present 2  ... Accounting Rate of Return - ARR The amount of profit, or return, that an individual can expect 3  ... Discounted Payback Period A capital budgeting procedure used to determine the profitability ...