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.
Â© 2012 Pearson Prentice Hall. All rights reserved. 10- Net Present Value (NPV) Net present value (NPV) is a sophisticated capital budgeting technique; found by subtracting a projectâs initial investment from the present value of its cash inflows discounted at a rate equal to the firmâs cost of capital. 2012 Pearson Prentice Hall. All rights reserved. 10- Net Present Value (NPV) Net present value (NPV) is a sophisticated capital budgeting technique; found by subtracting a projectâs initial investment from the present value of its cash inflows discounted at a rate equal to the firmâs cost of capital.