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LSDefine

Simple English definitions for legal terms

NPV

Read a random definition: commission of assize

A quick definition of NPV:

NPV: NPV stands for net present value. It is a way to figure out if an investment is worth it. It takes into account how much money you will make in the future and how much it will cost you to invest that money now. If the NPV is positive, it means the investment is a good idea. If it is negative, it means the investment is not worth it.

A more thorough explanation:

NPV stands for net present value. It is a financial term used to evaluate the investment potential of a project. It is calculated by finding the present value of net cash flow from a project and then discounting it by the cost of capital.

  • If a company invests $10,000 in a project and expects to receive $12,000 in net cash flow after one year, the NPV can be calculated by finding the present value of $12,000 and then subtracting the initial investment of $10,000. If the cost of capital is 5%, the present value of $12,000 is $11,428.57. Therefore, the NPV is $1,428.57.
  • Another example could be a real estate investment. If an investor purchases a property for $200,000 and expects to receive rental income of $20,000 per year for 10 years, the NPV can be calculated by finding the present value of the rental income and then subtracting the initial investment. If the cost of capital is 8%, the present value of the rental income is $148,024. Therefore, the NPV is -$51,976, which means the investment is not profitable.

These examples illustrate how NPV is used to evaluate the profitability of an investment. A positive NPV indicates that the investment is profitable, while a negative NPV indicates that the investment is not profitable. It helps investors make informed decisions about whether to invest in a project or not.

NPL | NQSO

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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