How do you Calculate NPV when Initial Investments are Unknown?

 
Net Present Value (NPV) > Forum Log in

How do you Calculate NPV when Initial Investments are Unknown?
Mohon, Bangladesh
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?

  
 
NPV
Hassan, Srilanka
I also have same doubt
  

 
NPV
Saad Wambangulu, United Kingdom
1 since it is one year from now. Any future cash flow is discounted.
  

 
NPV
Hitesh Jain, Student (MBA), India
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.
  

   
 

    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here

More on Net Present Value (NPV)
Summary
Forum
Best Practices
Expert Tips
Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 24-7-2017. All names tm by their owners.