The difference between the initial cost and the market value is called Net present value.
Net present value refers to the value of the all future cash flows of an asset which are discounted to the present.
In other word, net present value is the difference between PV of cash inflows and PV of cash outflows.
Therefore, in conclusion, the difference between the initial cost and the market value is called Net present value.
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The difference between the initial cost and the market value is called Net present value.
The information regarding the net present value is as follows:
Therefore we can conclude that the difference between the initial cost and the market value is called Net present value.
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