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) ).
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This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.