Answered: Define the term Net Present Worth?

Business

Economics

Define the term Net Present Worth?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Define the term Net Present Worth?

Expert Solution

Step 1

Net present worth is defined as present value of the total cash flows over a period of time. In other words, it is the difference between the present value of cash inflow and cash outflow over a period of time.

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