The time value of money (2) Net Present Value NPV=-Cost+PV Future Value and Compounding Simple interest:FV C *(1 +T *r) Compound interest:FV=C (1+r) slide 4slide 4 The time value of money (2) The time value of money (2) ƒ Net Present Value ƒ Future Value and Compounding Simple interest: FV = C * (1 + T *r) Compound interest: FV = C * (1+r) T NPV = − + PVCost