6-6 Net present Value Terminology C=Cash flow t= time period of the investment r=opportunity cost of capital o The Cash Flow could be positive or negative at any time period Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 6- 6 Irwin/McGraw-Hill Net Present Value Terminology C = Cash Flow t = time period of the investment r = “opportunity cost of capital” The Cash Flow could be positive or negative at any time period