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Net Present Value
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Concept Version 7
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Defining NPV

Airplane

Airplane

Before purchasing a new airplane, airlines evaluate the NPV of the plan by calculating the PV of the revenue it can earn from it and the PV of its cost (e.g., purchase cost, maintenance, fuel, etc. ).

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Pictures: AirAsia 9M-AFY Airbus A320-216 Airplane Arriving/Departing at Penang Airport – Viewology.Net."
    http://viewology.net/pictures-airasia-9m-afy-airbus-a320-216-airplane-arrivingdeparting-at-penang-airport/768/ Viewology CC BY-SA.

Related Terms

  • cash outflow
  • cash inflow
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