Net Present Value is the difference between the present value of cash flows and the initial investment.
Net Present Value = Present Value of cash flows - Initial Investment
The following image shows the Net Present value of the cash flows:
Net Present Value = $122,142 - $120,000
Net Present Value = $2,142
Because all people ( the public ) can fully enjoy this good/service without competing for it.
It can affect the company's ability to get a lending (borrow money). It can also affect the chances of finding an investor.
Because of supply and demand. More demand for a product makes the price go and and the supplier gives more because they get more
