What is the difference between NPV and EPV? - ProProfs Discuss
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What is the difference between NPV and EPV?

What is the difference between NPV and EPV?

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Asked by G. GRAY, Last updated: Nov 15, 2024

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A. Cook

A. Cook

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A. Cook
A. Cook, English Professor, M.A, Ph.D, Kentucky

Answered Mar 29, 2020

NPV is the net present value, and EPV is expected to present value. Both of these terms determine the present value, and the other demonstrates the predicted value. One of the prime differences that can be seen between NPV and EPV is that NPV mostly handles projects, and EPV focuses on the evaluation of the business.

NPV is quite valuable when preparing a capital budgeting project because it shows that if the total present value of projects anticipated money in the future, it is good enough to appease initial costs. EPV is practically the same as that of NPV, and the calculations are nearly the same. EPV 's are taken into account for determining the value of the company when another firm purchases it. Net Present Value (NPV) is used to decide the value of money today compared to the value of that money in the future.

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