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NPV = \sum_{i=0}^n \frac{R_{ti}}{(1+r)^{t_i}} = R_0 + \sum_{i=1}^n \frac{R_{ti}}{(1+r)^{t_i}} |
where
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| total number of time steps | ||||
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time passed since the first investment ( assuming that
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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, which is assumed constant over time | ||||
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the net cash flow at time step |
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the volume of cash investment at initial time moment
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