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Study Notes

Net Present Value (“NPV”) Explained

Level:
AS, A-Level
Board:
AQA, Edexcel, OCR, IB

Last updated 17 Oct 2018

The net present value ("NPV") method uses an important concept in investment appraisal – discounted cash flows.

The short video below explains the concept of net present value and illustrates how it is calculated. The study note below also explains NPV further.

Investment Appraisal - Net Present Value (NPV) Explained

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