Net Present Value (NPV) is a measure that estimates the expected profitability of a project based on its forecasted cash flow stream and the initial cost of such project. A positive Net Present Value (NPV) indicates that the project, considering the time value of money, covers the initial investment and can be therefore accepted by
Break even analysis is an estimation that intends to find the particular number of units or the amount of revenues that need to be produced in order to achieve a profit of zero. The break-even point is achieved, therefore, when total revenues are equal to the sum of both variable and fixed costs. The volume
Present value is a formula that estimates the current value of a given amount of cash flow generated in a future date, considering that the value of money decreases as time passes. It is a concept widely employed in financial analysis to determine how much a future stream of cash would be worth today. What