Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
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How much is the initial investment
Discount rate (i) enter in decimal percentage (10% = 0.1)
Time (t) how many intervals will we calculate for?
Net cash inflow-outflows during a specific single period (Rt)
or
Net Present Value (NPV)
Positive means worth it, negative is not a good investment