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Net Income

The accounting measure of a project

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The accounting measure of a project operating period after-tax profit is called net profit.

NP = Σ R - Σ E         (1)

where

NP = net profit (or net income)

R = project revenues

E = project expenses

Project expenses includes all costs needed to generate the revenue, including

 

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Related Topics

  • Economics Engineering economic concepts - cash flow diagrams, discount rate, internal rate of return - IRR, income taxes, inflation ..

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