Program Explaining Net Present Value

In finance, the cash flows forward and backward directions with the change of time and both can be defined as the sum of the present values (PV) of each cash flows of the identical entity. FV (Future Value) The invested cash gives interest and interest again invested gives more interest. Cash value at a particular date on future is same in value to a particular sum today. Net Present Value (NPV) NPV is the main tool in discounted cash flow analysis and this is a standard technique for using the time value of cash to upgrade long term projects. NPV is PV of future cash flows minus the purchase price. FV formula and factors Future value formula Factors To solve any variable, other variable must be given (i) FV How much will I have in the future (ii) P How much do I require to invest now (iii) r What rate of return do I require to earn (iv) T How long will it take me to reach my destiny NPV formula and factors NPV formula The best method for corporation investment and invest if NPV Factors I Outlay of initial investment Ct Cash flow of project in time t