Net present Value Function under Conventional and Non-Conventional Cash Flow

The aim of the article is a mathematical derivation of rules for construction of net present value function given the assumption of conventional and non-conventional cash flows. For non-conventional cash flows the following combinations of positive (+) and negative (–) cash flows have been considered for NPV function construction: (+, –, +), (–, +, –), (+, –, +, –), (+, –, +, –, +). The article also attempts to indicate the most frequent mistakes in calculation and interpretation of the function.