Does the Net Present Value (NPV) calculation uses cash inflows or profits?

A-Z
FAQ
Start page
Wisdom
Zoom
More
App Reviews


12 Disciplines A-Z Dictionary App FAQ Reviews Start Page Wisdom Zoom
• 
• Log in

Net Present Value (NPV) Knowledge Center

Best Practices 20 Tafadzwa, Zimbabwe Does the Net Present Value (NPV) calculation uses cash inflows or profits? Does the NPV calculation uses cash inflows or profits? Should I use the revenue generated by the project or the profit? X Welcome to the Net Present Value (NPV) best practices. The topic being discussed here is: "Does the Net Present Value (NPV) calculation uses cash inflows or profits?". Log in   Comments Rating   6 Alpin McGregor freeelance, United Kingdom   NPV and Cashflows NPV and IRR both use cashflows. Profit is not a cashflow. An approximation for cashflow would be profit plus depreciation. Remember this is only an approximation. For capital investment decisions by a firm, the firm will need to prepare cash forecasts anyway (or at least it should do) so the question of using profit or even having to adjust profit for non cash items such as depreciation should not arise.   Leave a comment Share your knowledge or experience

More on Net Present Value (NPV): Summary Discussion Topics 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 NPV of $1 Million for a Project Means What WHEN to Invest? Investing at the Right Moment... Calculating NPV with Missing Data Example of Net Present Calculation NPV of Partial Payments How do you Calculate NPV when Initial Investments are Unknown? 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 Special Interest Group Do you know a lot about Net Present Value (NPV)? Become our SIG Leader

More on Net Present Value (NPV): Summary Discussion Topics 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 NPV of $1 Million for a Project Means What WHEN to Invest? Investing at the Right Moment... Calculating NPV with Missing Data Example of Net Present Calculation NPV of Partial Payments How do you Calculate NPV when Initial Investments are Unknown? 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

Special Interest Group Do you know a lot about Net Present Value (NPV)? Become our SIG Leader

Net Present Value (NPV) Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.3 - Last updated: 2-10-2023. All names ™ of their owners.

12manage is looking for BA/MBA students. More info.