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Ads have been placed on the back of envelopes that contain airplane tickets and on banners pulled by planes that are flown over sports arenas.Both of these are examples of:
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.
Net Present Value
A calculation used in finance that measures the profitability of an investment by summing the present values of its cash flows minus initial investment.
Initial Investment
The initial amount of money put into a project or venture to start its operations.
Required Return
Required return is the minimum expected return an investor seeks for an investment, considering its risk level.
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