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NPV assumes Certainty of Cash Flows

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Net Present Value (NPV)
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Geert van der Horst, Netherlands

NPV assumes Certainty of Cash Flows

When using the Net Present Value method be careful: this calculation assumes certainly in the forecasted future cash flows. For strategic longer term projects this assumptions is often not valid in today's volatile markets and uncertain business environment.

 

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
topic 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
👀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
topic 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
👀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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