Without Using Formulas, Provide a Definition of Net Present Value

question 186

Essay

Without using formulas, provide a definition of net present value (NPV).

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Definitions:

List Price

The manufacturer's suggested retail price or the price at which a product is commonly sold to the public.

Markdown

is a reduction in the selling price of goods, often to clear old stock or respond to reduced demand.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Calculate

To determine mathematically the amount or number of something.