The NPV is the total present value of future revenue and cost of an activity
The NPV was calculated by the formula NPV
where FV is the future vale of
money , i is the interest or discount rate , and n is the number of years
Among the measures of investment returns over time ,npv OFFERS THE BETTER MEASURE OF project worth
The cbr is the ratio obtained the present worth of the benefit stream is divided by the present worth of the cost stream and can be obtained as
fallows