Net Present Value

  • You are planning to invest in a business venture.
  • You have been assured that you will receive, in return, a certain amount at the end of each payout period for several years.
  • The prevailing inflation rate, however, will certainly reduce the value of the money you receive each period.
  • What is the net present value of this venture?
Select your desired monetary unit.
The amount you want to invest in the business venture. (i.e. 100,000)
The amount you will receive each period in return for the investment. (i.e. 30,000)
The rate by which the returns have been compounded. (i.e. 7%)
The number of times the returns will be compounded within a year. (i.e. 1)
The number of years that you will be receiving returns. (i.e. 5)