# How do you Calculate NPV when Initial Investments are Unknown?

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How do you Calculate NPV when Initial Investments are Unknown?

In calculating NPV when initial investment is not mentioned what should i do? Only cost and benefit from year 1 is given. What would be the power of (1+discount rate) 1 or 0?

Rating

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Hassan, Srilanka

NPV if Initial Investments are Unknown

I also have same doubt.

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Saad Wambangulu, United Kingdom

NPV

1 since it is one year from now. Any future cash flow is discounted.

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Hitesh Jain
Student (MBA), India

NPV

If the time of cost is not given NPV can't be calculated. If the cost incurred is in the beginning of the period it is an investment, if it is later in the period you have to find out the present value of cost.
For example, if the cost is incurred monthly, you have to discount every month's cost and the sum of all discounted costs will be the net present outflow or investment.

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Maheen talath
Student (University), India

Calculating NPV when Initial Investments are Unknown

I'm not getting your answer please explain it clearly. Should we take the first cash inflow as an initial investment...? How to reduce cost.