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| LaTeX Math Block |
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NPV = \sum_{ti=0}^n \frac{R_t{ti}}{(1+r)^t_i} = R_0 + \sum_{ti=1}^N \frac{R_t{ti}}{(1+r)^t^{t_i}} |
where
– time passed since the first investment
( assuming that ),
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| body | r = \rm \frac{Cash_{out} - Cash_{in}}{Cash_{in}} |
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– the discount rate, i.e. the return that could be earned per unit of time on an investment with similar risk
– total number of time steps
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| body | R_t {ti} = \rm Cash_{in}(t_i) - \rm Cash_{out}(t_i) |
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–
the net cash flow at time step t. | LaTeX Math Inline |
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| body | R_0 = - \rm Cash_{out}(t=0) |
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–
the initial volume of cash investment at time step t initial time moment .
