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LSDefine

Simple English definitions for legal terms

NPV

Read a random definition: free port

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.

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mushroomroundtop01
16:46
EPSTEIN PROGRAM TOO WOW UR AMAZING
cumsock
16:46
I thought that was an Epstein joke
@IrishDinosaur: proud of you champion :)
mushroomroundtop01
16:47
Nah its rllt their pi program
16:47
When I was applying I thought the same thing Mr Sock
jackfrost11770
16:47
YEAHHHHHH DINOOOO
how did @sleepytimeteabear get waitlisted from gtown and upenn with a 180
thanks guys, im fucking stoked. its my first decision so far
and from my alma mater :')
mushroomroundtop01
16:48
and thats such a huge decision too omg so happy for u
jackfrost11770
16:48
If I signed up for a Cornell lets talk thing but my train was 30 minutes late and now I defiantly can't show up is it alright if I just don't .... I don't want it to affect me lmfao
jackfrost11770
16:48
how many ppls usually show up to those things
<3 much love to yall. i gtg back to work now but thanks for celebrating w me
jackfrost11770
16:49
They have one every month don't they
i cant imagine cornell keeping track of who goes to the lets talk
i mean maybe?
jackfrost11770
16:50
I mean they asked for lsac number but yeah I don't imagine they specifically keep track? Gtown does tho ....
jackfrost11770
16:50
But gtown is special lmfao
jackfrost11770
16:50
In a bad way
16:51
Do you need camera on/mic on for those Lets Talk Cornell things? I kinda want to attend but I'm at work
jackfrost11770
16:51
I have no idea I've never been to one
jackfrost11770
16:51
Hence Idk what to expect even capacity wise
jackfrost11770
16:51
But I'm literally still 30 minutes from home and it's in 10 min so unless I join on my phone with no camera or mic then I cannot lmao
jackfrost11770
16:55
You know what if Cornell don't want me they don't me I'm not worrying myself over this
16:57
There was a Vandy wave today?
GodsPlanUltimately
16:57
@jackfrost11770: What a excellent mindset. Cornell must have poor taste
1. Kansas 196. Cornell
nope cornell can be 2.
cornell is incredibly based
our professors are sigmapilled goonmaxxers
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