Munich Personal RePEc Archive

Introducing the Net Present Value Profile

Bell, Peter (2017): Introducing the Net Present Value Profile.

[thumbnail of MPRA_paper_79764.pdf]

Download (427kB) | Preview


The Net Present Value is an important statistic in the evaluation of investment opportunities. Analysts often consider the sensitivity of NPV to different parameters in an economic model, but always seem to consider the NPV of a project at the single instant before the project is launched. This short note introduces the idea of a NPV Profile, which shows how the NPV of a project changes over the life of that project. The note calculates the NPV Profile for a simplified cash flow model and briefly discusses how this statistic can be used to consider returns in possible takeover scenarios.

Commentary/Response Threads

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.