Net Present Value
Net Present
Value
=
CF0
+
CF1(1+r)
+
CF2(1+r)2
+ ... +
CFn-1(1+r)n-1
+
CFn(1+r)n
+
PTVn(1+r)n
CFn Projected cashflow n year(s) from now
PTVn = CFn (1+g) (r−g) Terminal value n year(s) from now