How do you Calculate NPV when Initial Investments are Unknown?

Net Present Value (NPV)
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Net Present Value (NPV) > Best Practices > How do you Calculate NPV when Initial Investments are Unknown?

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

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  NPV if Initial Investments are Unknown
Hassan
  I also have same doubt.

  NPV
Saad Wambangulu
  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.

  Calculating NPV when Initial Investments are Unknown
Maheen talath, Student (University), India
  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.

   
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Net Present Value (NPV)
Summary
Forum
Calculating NPV for a Project
NPV Cost Avoidance and Savings
🔥NPV with Only Costs & IRR
Best Practices
🥇Re-evaluating an investment decision
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Choosing between Investments Using a Comparison of NPVs
More Complex NPV Comparison: Interrelated Projects
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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
NPV for Leased Equipment versus Purchased Equipment
NPV with a Missing Cash Flow Figure


Net Present Value (NPV)
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