6-5 Net present Value NPV=PV- required investment NPV=C+ (1+r) C NPV=co+ 2+ (1+r)(1+r) 2 (1+r Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 6- 5 Irwin/McGraw-Hill Net Present Value NPV = PV - required investment NPV C C r t t = + + 0 (1 ) NPV C C r C r C r t t = + + + + + + + 0 1 1 2 2 (1 ) (1 ) 1 ... ( )