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# TOPIC: rita's page 106

## rita's page 106 10 years 11 months ago #3252

 Nadia Momani Topic Author Offline Fresh Boarder Posts: 2 Thank you received: 0 hello can anybody help me understanding how Rita solved the formula page 106 in her seventh addition book, i did not got the idea Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## rita's page 106 10 years 11 months ago #3254

 Serge Lionel YEBEL NDIGUI Offline Fresh Boarder Posts: 2 Thank you received: 1 hello, is it about how to calculate NPV at 10% rate of interest? Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## rita's page 106 10 years 11 months ago #3256

 Nadia Momani Topic Author Offline Fresh Boarder Posts: 2 Thank you received: 0 yes,i couldn't understand the numbers in the table where did they come from thank you Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## rita's page 106 10 years 11 months ago #3262

 Serge Lionel YEBEL NDIGUI Offline Fresh Boarder Posts: 2 Thank you received: 1 Hello, The numbers in the table are just an example to show how to calculate NPV by applying the formula. I think the most important is to keep in mind that:NPV is the TOTAL present value of your Revenues minus the TOTAL present value of your cost.over a given time period. in the table you have the column for Income/Revenue, then you have another column for Costs. so for this table, NPV (from time period 0 to 3) = TOTAL (Present value of Income(year 0) +Present value of Income (year 1) +Present value of Income (year 2) +Present value of Income (year 3) ) - TOTAL ( Present value of COST (year 0) +Present value of COST (year 1) +Present value of COST (year 2) +Present value of COST (year 3) ). Thanks Serge The following user(s) said Thank You: Nadia Momani Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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