Some attributes like NPV, ENPV
, GDP, balance of payments surplus and consumer surplus are expressed in money terms, like dollars or Euros.
where: N--the ENPV of the project; t--cash flow time; Gt--the net cash flow of the project at time t; r--discount rate; k--the existence period of the project.
-- Economic Internal Rate of Return (EIRR) is discount rate r' that produces a zero value for the ENPV:
The ENPV of the portfolio will be calculated from the sum of the expected net present values of the various projects likely to be selected.
The first one optimizes the ENPV of the portfolio and the second one has the NPV at risk as the objective.
A model is constructed to compute the expected net present value (ENPV
) without accounting for growth options.
Also, in this case the decision may be delayed to the next period (if the "waiting ENPV
" is positive) or suspended waiting for new information.
of total industry R&D is a concave function of the number of firms in the market, reaching its peak at some intermediate level of competition.
Using a lattice of post-tax cash flows, it is possible to calculate the Expected NPV of the project (ENPV
Total investment is $373.4 million expressed as expected net present value (eNPV
As shown in Figure 1, the model of cash-flow planning and tracking is used in calculation of ENPV
for all possible solutions (e.g., Sol.
It is calculated ENPV
(so called: the original [E.sub.NPV]) (col 2) for the model building.