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WHEN to Invest? Investing at the Right Moment...

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Net Present Value (NPV)
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Joao Stoltz
Project Manager, Sweden

WHEN to Invest? Investing at the Right Moment...

I have done a NPV calculation for an investment option. The problem I'm thinking about is not IF I should invest, it is WHEN to invest.
Its weird to make a calculation on a 10 years basis for option 1 (invest now) and compare it with option 2 (invest in 3 years time) for the same period, because it will inevitably give a lower NPV (I am only getting 7 years (6 really) of positive contributions to NPV and 3 initial years where nothing happens...

 

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

SIG Leader

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

Knowledge Center

Net Present Value (NPV)
Knowledge Center



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