...
LaTeX Math Block | ||
---|---|---|
| ||
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
| total number of time steps | ||||||||
---|---|---|---|---|---|---|---|---|---|
| time passed since the first investment ( assuming that
| ||||||||
| 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 | ||||||||
| the net cash flow at time step | ||||||||
| the volume of cash investment at initial time moment
|