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Formule Test
Formule Test
= +
+
( )
n
n
i A PV
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FORMULAE
STX1120 TEST Formulae Dr Androulla Michaeloudis Page 2
Net Present Value (NPV)
100
year base the in Price
year current the in Price
Index Price =
100
0
Index Price =
P
P
n
100
year base the in prices the of Sum
year current the in prices the of Sum
Index Price Aggregate Simple =
100
0
Index Price Aggregate Simple =
P
P
n
Sum of the price relatives
Simple Mean Price Index 100
Number of items
=
n
0
P
P
Simple Mean Price Index 100
n
| |
|
\ .
=
NPV = Sum of Discounted Cash Flows Cost