Essay About Convert Cash Flow And Formula Npv

Convert Cash Flow
To convert cash flow to NPV, we use the formula NPV = CASH FLOW / RATE. The rate refers to the actual rate calculated according to the growth for cost of capital each year. However, in the case of cash outflows due to purchases or inflows due to salvage values of planes, we use the same formula to compute NPV, but the only difference is that we use the discount rate for purchases and salvage value as stated in the economic data. Then we total up both NPV in operating activities as well as in investing activities to derive the total NPV. To convert cash flow to NPV, we use the formula NPV = CASH FLOW / RATE. The rate refers to the actual rate calculated according to the growth for cost of capital each year. However, in the case of cash outflows due to purchases or inflows due to salvage values of planes, we use the same formula to compute NPV, but the only difference is that we use the discount rate for purchases and salvage value as stated in the economic data. Then we total up both NPV in operating activities as well as in investing activities to derive the total NPV. To convert cash flow to NPV, we use the formula NPV = CASH FLOW / RATE. The rate refers to the actual rate calculated according to the growth for cost of capital each year. However, in the case of cash outflows due to purchases or inflows due to salvage values of planes, we use the same formula to compute NPV, but the only difference is that we use the discount rate for purchases and salvage value as stated in the economic data. Then we total up both NPV in operating activities as well as in investing activities to derive the total NPV.To convert cash flow to NPV, we use the formula NPV = CASH FLOW / RATE. The rate refers to the actual rate calculated according to the growth for cost of capital each year. However, in the case of cash outflows due to purchases or inflows due to salvage values of planes, we use the same formula to compute NPV, but the only difference is that we use the discount rate