How do you Calculate NPV when Initial Investments are Unknown?

Net Present Value (NPV)
Knowledge Center

Net Present Value (NPV) > Forum

New Topic

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? (...) Read more? Sign up for free


NPV if Initial Investments are Unknown

I also have same doubt.

  Saad Wambangulu


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

  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.

  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.


More on Net Present Value (NPV)
NPV of $1 Million for a Project Means What
WHEN to Invest? Investing at the Right Moment...
Calculating NPV with Missing Data
How do you Calculate NPV when Initial Investments are Unknown?
Example of Net Present Calculation
NPV of Partial Payments
Missed Interest in NPV
NPV assumes Certainty of Cash Flows
Calculating Cost per Unit if Zero NPV without any Operating Costs Information
Calculating NPV for a Project
NPV Cost Avoidance and Savings
NPV for Leased Equipment versus Purchased Equipment
NPV with a Missing Cash Flow Figure
🔥NPV with Only Costs & IRR
Best Practices
Re-evaluating an investment decision
Operating Cash Flows
Does the Net Present Value (NPV) calculation uses cash inflows or profits?
Choosing between Investments Using a Comparison of NPVs
More Complex NPV Comparison: Interrelated Projects
Special Interest Group

Are you interested in Net Present Value (NPV)? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Net Present Value (NPV)
Knowledge Center


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 25-2-2021. All names of their owners.