| Subject: |
Calculator: Calculating Net Present Value
|
| Category: |
ROI |
| Message: |
How will you ever know whether a project is worth doing? Figure out its value to you at the present -- before you get going. This is called the Net Present Value of an investment, where you determine all the benefits and costs of the project for a given horizon, say three years. Then you discount back to the present at a ``hurdle rate.'' That rate is the return that the company thinks it can get from alternate uses of its cash. - Baseline Magazine
Full Story: http://www.baselinemag.com/article2/0,1397,1826600,00.asp
|
| Thread: |
|