Net present value refers to the value of net cash inflows in present time after discounting with minimum required rate of return . In other words we can say that excess of discounted value of future cash inflows over initial investment is known as net present value. To calculate: Net present value of the investment.

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Chapter 26, Problem 15QS

To determine

Introduction:

Net present value refers to the value of net cash inflows in present time after discounting with minimum required rate of return. In other words we can say that excess of discounted value of future cash inflows over initial investment is known as net present value.

To calculate:

Net present value of the investment.

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