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Net Present Value (“NPV”) Explained

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

Last updated 17 Oct 2018

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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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