Net present value is the current, lump sum value of a set of future cash flows, discounted for the time value of money.

We calculate that the present value of the free cash flows is $326. Thus, if you were to sell this business based on its expected cash flows and a 10% discount rate, $326.00 would be a very fair ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

How to Calculate Net Cash Inflow Using Depreciation, Tax and the Contribution Margin. A company's net cash inflow is composed of sales, minus total fixed costs and total variable costs.

The Formula for Calculating Present Value of an Even Cash Flow. An even cash flow of regularly scheduled payments defines an annuity. If you borrow money to start your business, the monthly ...