NPV


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NPV

Net Present Value

A measure of discounted cash inflow to present cash outflow to determine whether a prospective investment will be profitable. For example, if a dentist wishes to purchase a new dental practice, he may calculate the net present value over a number of years to see if he will recover his investment in a reasonable period of time. If the ask price for the dental practice is $500,000, this is the present cash outflow used in the calculation. If the discounted cash inflow over, say, two years, is greater than or equal to $500,000, then the investment will likely be profitable. See also: Present value.
References in periodicals archive ?
NPV was applied at 1x107pob/ml and 1x108pob/ml against 2nd and 4th instar larvae.
However, our results show that higher cutoffs are associated to higher NPV.
NPV = TN/TN + FN = 9,500/9,500 + 10 [congruent to] 1 (compared to 1 for a perfect system) (3)
Results of sensitivity analysis depict that NPV and COE is not much vulnerable to the reasonable variations in the economic parameters, except for two assumptions in sensitivity analyses, payback period is within the allowed range.
For instance, if you want to calculate the break even PEPM, leave the utilization and effectiveness rates of all other savings as is, and keep increasing the PEPM until the NPV equals zero, and the IRR equals the cost of capital/discount rate.
The NPV rule states that managers increase shareholders' wealth by accepting projects that are worth more than they cost.
Unlike the sensitivity analysis, scenario analysis provides a likiely range of project's NPV and IRR (Fig.
Decision of investing firm's financial funds in a specific investment project is taken once calculus reveals that, for respective project, NPV > 0.
armigera were infected with a NPV suspension (1A-107 POB mL-1) by spraying on artificial diet.
This paper constructed a process which initially simulated the maximal NPV with ANFIS method.
Fuller's NPV was really just present value, but subtracting an arbitrary constant" (Engelhardt, p.