The NPV is calculated as the initial investment minus the present value of the cash flows. If

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The NPV is calculated as the initial investment minus the present value of the cash flows. If there is a difference in the time period of the revenue and the costs, two fundamental drivers of the NPV, then the results will be biased.

Could you further explain when the results would be biased? Are there any other cases where the results of the NVP would be biased?

Posted Date: May 18, 2024 04:12 PM

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The NPV is calculated as the initial investment minus the present value of the cash flows. If

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