$100 $400 $800 $800 $500 0 1 2 3 4 un Net Present Value (NPV)...
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$100 $400 $800 $800 $500 0 1 2 3 4 un Net Present Value (NPV) The NPV function calculates the cumulative present values of a series of cash flows all at once. CF NPV = An investment with a positive NPV adds value, whereas an investment with a negative NPV loses value. Assuming a 9% interest rate, what is the NPV of the cash flow stream shown above? NPV = Assuming a new 7% interest rate, what is the NPV of the cash flow stream shown above? NPV = This example demonstrates the relationship between interest rates and present values. As interest rates increase, the present value (PV), or net present value (NPV), will
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