1, net present value = total present value of future remuneration-total construction investment NPV = ∑ it/(1+r)-∑ ot/(1+r);
2. Where: NPV- net present value; It-the cash inflow in the t year;
3. Ot——t cash outflow in T year; R- discount rate;
4, n-the life cycle of the investment project; NetPresentValue is the difference between the discounted value of future cash flow generated by investment and the investment cost of the project. Net present value method is a method to evaluate investment schemes.