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Running head: NPV IN YOUR OWN LIFE1NPV in Your Own LifeName:Institution:April 13, 2020
NPV IN YOUR OWN LIFE2NPV in Your Own LifeNet Present Value is a financing concept which illustrates the difference of the present value of cash inflow and outflow over a period. It serves as a tool while making not only the corporate choice e.g. whether to initiate a project or not but also in making futuristic personal decisions. For the last five, I have been using public transport for my traveling. If I would make arough estimate it has cost me $50 a day. By keeping in mind that I travel five days a week most of the time and expanding these expenses every year, I have spent $ 65,000 on my travel expenses over the last five years. I have calculated my traveling cost using the following estimation:Traveling Cost of Last Five Year = Per Day Cost x No of Days a week traveled x No of week a Year x No of Years = 50 x 5 x 52 x 5= $65,000Per Year Travelling Cost = $65,000/5 = $13,000