Talk:Net present value

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Revision as of 16:54, 25 February 2008 by imported>Nick Gardner
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 Definition The sum of the discounted values of a sequence of cash flows. [d] [e]
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I very much hope that in editing this article I have not harmed an eduzendium project. If I have, I apologise and I can only take comfort in the fact that all my changes can be reversed if necessary. However, I have run into the need for a link to an article on this subject in an article that I am trying to draft on Financial economics and for that purpose, I have introduced a slight extension to the maths to cover net present expected value.

I have transferred all of the maths onto the "Tutorials" subpage. That is in accordance with the policy that has been adopted for economics articles on the grounds that many educated layman are fazed by algebra, including those who can readily understand the same proposition phrased as verbal logic. I have introduced some rephrasing of the existing text, mainly for the same reason, but I have refrained from developing the subject further. I suggest that there is room for further development, for example in demonstrating the superiority of the NPV criterion over the discounted cash flow criterion, and in giving some numerical examples of NPEV calculations.

If it is decided to reverse my changes, I should be grateful for an opportunity to transfer some of the revised drafting to the tutorials subpage of the financial economics article before it is deleted from this article.

Nick Gardner 11:38, 25 February 2008 (CST)