Open AccessAn Alternative Formulae for the Net Present Value (NPV)
Author(s) -
Reza Habibi
Publication year - 2016
Publication title -
journal of advances in mathematics
Language(s) - English
Resource type - Journals
ISSN - 2347-1921
DOI - 10.24297/jam.v12i2.6851
Subject(s) - mathematics , portfolio , net present value , equivalence (formal languages) , value (mathematics) , statistics , discrete mathematics , economics , finance , production (economics) , macroeconomics
An alternative formulae is derived for NPV. First, the equivalence of NPV formulae and the value of a special portfolio is shown and weights of special portfolio is derived by minimizing the variance of portfolio.