Net present value refers to the difference between the present value of future capital (cash) inflow (income) and the present value of future capital (cash) outflow (expenditure), which is the basic index of net present value method in project evaluation. Convert future capital inflow and capital outflow into present value according to the present value coefficient of each period of the expected discount rate, and then determine their present value. This expected discount rate is determined according to the minimum investment return rate of the enterprise, which is the minimum acceptable limit of enterprise investment.
Tips:
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