The Components of NPV formula

The Components of NPV formula

by habibullah bhuyan -
Number of replies: 0

The calculation of NPV encompasses many financial topics in one formula: cash flows, the time value of money, the discount rate over the duration of the project (usually WACC), terminal value, and salvage value.


Additional Net Present Value Factors


Throughput on goods sold. If the decision relates to an investment that will result in the sale of goods, include cash flows from the throughput generated by these goods. ... 

Cash from sale of asset. 

Maintenance costs. 

Working capital.

Tax payments.

Depreciation effect.