IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-39116-2_1.html
   My bibliography  Save this book chapter

How Net Present Value Is Implemented

In: A Pragmatic Guide to Real Options

Author

Listed:
  • Tom Arnold

Abstract

When reading corporate finance textbooks, net present value (NPV) emerges as the preferred metric for project valuation under most circumstances. NPV is intuitively appealing because cash outflows (costs) are being compared to cash inflows to determine if one is bigger than the other. More specifically, all of the cash flows (inflows and outflows) are discounted to generate the NPV calculation: NPV equals the sum of discounted cash inflows less the sum of discounted cash outflows (see the appendix to this chapter for a quick tutorial on discounting).

Suggested Citation

  • Tom Arnold, 2014. "How Net Present Value Is Implemented," Palgrave Macmillan Books, in: A Pragmatic Guide to Real Options, chapter 0, pages 1-13, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-39116-2_1
    DOI: 10.1057/9781137391162_1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Clemens Fuchs & Joachim Kasten & Maxi Vent, 2020. "Current State and Future Prospective of Repowering Wind Turbines: An Economic Analysis," Energies, MDPI, vol. 13(12), pages 1-13, June.
    2. Mohammadali Norouzi & Matti Lehtonen, 2019. "Providing Fault Ride-Through Capability of Turbo-Expander in a Thermal Power Plant," Energies, MDPI, vol. 12(21), pages 1-19, October.
    3. Sebastian Gräfe & Michael Köhl, 2020. "Impacts of Future Crop Tree Release Treatments on Forest Carbon as REDD+ Mitigation Benefits," Land, MDPI, vol. 9(10), pages 1-17, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-39116-2_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.