NET PRESENT VALUE, UNEVEN CASH FLOWS (NPV)

Net present value analysis is used by economists to determine whether an investment is valid or not: given a certain interest rate, a positive net present value indicates that the investment is valid. This program is useful when you want to determine the present value of a series of cash flows, which do not necessarily have to be the same in each period. The first data to be entered are the initial value of the investment and the annual interest rate received, after which we insert the various cash flows which will be positive or negative numbers depending on whether you receive or distribute funds.