Publication result detail

Determination of the Net Present Value with Various Types of Cash Flow

PAPEŽÍKOVÁ, P.; KORYTÁROVÁ, J.

Original Title

Determination of the Net Present Value with Various Types of Cash Flow

English Title

Determination of the Net Present Value with Various Types of Cash Flow

Type

Paper in proceedings (conference paper)

Original Abstract

Investment decision-making is based on calculation of the economical indicators, including, inherently, net present value (NPV). Net present value is a financial variable based on discounting. In other words,it respects the influence of time. For calculation of NPV, the future cash-flows have to be estimated and discounted to the present value using the discount rate representing the investors time value of money. Commonly, the value is determined as a sum of discounted annual cash flows of the evaluation period. This formula can be used for long-term projects with defined duration as well as for that with perpetuity.

English abstract

Investment decision-making is based on calculation of the economical indicators, including, inherently, net present value (NPV). Net present value is a financial variable based on discounting. In other words,it respects the influence of time. For calculation of NPV, the future cash-flows have to be estimated and discounted to the present value using the discount rate representing the investors time value of money. Commonly, the value is determined as a sum of discounted annual cash flows of the evaluation period. This formula can be used for long-term projects with defined duration as well as for that with perpetuity.

Keywords

net present value, cash flow, short-term projects, discount rate

Key words in English

net present value, cash flow, short-term projects, discount rate

Authors

PAPEŽÍKOVÁ, P.; KORYTÁROVÁ, J.

Released

06.11.2014

Publisher

EuroScientia vzw

Location

Brusel

ISBN

978-90-822990-1-4

Book

OCEŇOVANIE A RIADENIE STAVEBNÝCH PROJEKTOV 2014 Zborník vedeckých prác

Pages from

147

Pages to

152

Pages count

6

BibTex

@inproceedings{BUT111777,
  author="Petra {Pískatá} and Jana {Korytárová}",
  title="Determination of the Net Present Value with Various Types of Cash Flow",
  booktitle="OCEŇOVANIE A RIADENIE STAVEBNÝCH PROJEKTOV 2014 Zborník vedeckých prác",
  year="2014",
  number="1",
  pages="147--152",
  publisher="EuroScientia vzw",
  address="Brusel",
  isbn="978-90-822990-1-4"
}