Question

Net present value and evaluation of gold productions formula

Answer 1

Net Present Value(NPV) is a formula used to determine the present value of an investment by the discounted sum of all cash flows received from the project. The formula for the discounted sum of all cash flows can be rewritten as.

Answer 2

Answer:

✔✔ To calculate the NPV, the first thing to do is determine the current value for each year's return and then use the expected cash flow and divide by the discounted rate. Net Present Value (NPV) = Cash Flow / (1+rate of return) ^ number of time periods. ✔✔