<p>NPV and PDV are two different names for the same concept. If you were to receive M every year and the discount factor is $\delta$ then NPV = PDV = $\sum_{i=0}^{\infty}\delta^i M= \frac{M}{1-\delta}$.</p>

CC BY-SA 3.0
2017-01-06T20:51:28.047Z
2017-01-06T20:51:28.047Z
ElChorro
<p>What is the difference between Net Present value and present discounted value when periods are given in infinity $\infty$ . Both are then equal to $\frac M r$? </p>

<microeconomics>
Difference between NPV and PDV
Khan Saab
# Difference between NPV and PDV

(Asked by: username_0 on 2017-01-06)

What is the difference between Net Present value and present discounted value when periods are given in infinity $\infty$ . Both are then equal to $\frac M r$?

**Tags:** microeconomics


---

## 1 answers

### Answer by username_1 on 2017-01-06. Score: 2 | Accepted answer

NPV and PDV are two different names for the same concept. If you were to receive M every year and the discount factor is $\delta$ then NPV = PDV = $\sum\_{i=0}^{\infty}\delta^i M= \frac{M}{1-\delta}$.


---

