structural:scholar_edition, linguistic:voice_change, information:extraction, quality:correction
Formula

The NPV can be rewritten using the net cash flow (R t) {\displaystyle (R_{t})} in each time period as: N P V (i, N) = ∑ t = 0 N R t (1 + i) t {\displaystyle \mathrm {NPV} (i,N)=\sum _{t=0}^{N}{\frac {R_{t}}{(1+i)^{t}}}} By convention, the initial period occurs at time t = 0 {\displaystyle t=0}, where cash flows in successive periods are then discounted from t = 1, 2, 3... {\displaystyle t=1,2,3...} and so on. Furthermore, all future cash flows during a period are assumed to be at the end of each period. For constant cash flow R, the net present value N P V {\displaystyle \mathrm {NPV} } is a finite geometric series and is given by: