11-28-2014, 12:09 AM
NPV = -Io + CF1/(1+i) + CF2/(1+i)power2 + CF3/(1+i)power3..........
or
NPV = PV - cost
will invest if npv value +ve.
PI = PV/ cost
will invest if pi value >1
or
NPV = PV - cost
will invest if npv value +ve.
PI = PV/ cost
will invest if pi value >1