5 ms·
The underlying idea is that a dollar today is worth more to you than a dollar tomorrow (all else equal). The NPV is how much a thing is worth/costs now after t
by superprime 12y ago
The underlying idea is that a dollar today is worth more to you than a dollar tomorrow (all else equal).
The NPV is how much a thing is worth/costs now after taking that into account and discounting future cashflows appropriately.