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Wednesday 15 April 2015

The present value of expected net benefits is given by:-(With Inflation Included).

http://en.wikipedia.org/wiki/Fisher_equation?hc_location=ufi

\text{PVNB} = \frac{Z_1(1+I_1)}{1+r_1} + \frac{Z_2(1+I_1)(1+I_2)}{(1+r_1)(1+r_2)} + \cdots + \frac{Z_n(1+I_1)\cdots(1+I_n)}{(1+r_1)\cdots(1+r_n)}
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