Editing Net present value (section)

== History ==
Net present value as a valuation methodology dates at least to the 19th century. [[Karl Marx]] refers to NPV as [[fictitious capital]], and the calculation as "capitalising," writing:<ref>Karl Marx, [[Capital, Volume III|''Capital,'' Volume 3]], 1909 edition, p. 548</ref>
{{blockquote|The forming of a fictitious capital is called capitalising. Every periodically repeated income is capitalised by calculating it on the average rate of interest, as an income which would be realised by a capital at this rate of interest.}}
In [[mainstream economics|mainstream]] [[neo-classical economics]], NPV was formalized and popularized by [[Irving Fisher]], in his 1907 ''The Rate of Interest'' and became included in textbooks from the 1950s onwards, starting in finance texts.<ref>{{citation | title = Systemic Fear, Modern Finance and the Future of Capitalism | first1 = Shimshon | last1 = Bichler | first2 = Jonathan | last2 = Nitzan | location = Jerusalem and Montreal | publisher = bnarchives.net | date = July 2010 | url = http://bnarchives.yorku.ca/289/03/20100700_bn_systemic_fear_modern_finance_future_of_capitalism.pdf | pages = 8–11 (for discussion of history of use of NPV as "capitalisation")}}</ref><ref>{{citation | title = [[Capital as Power. A Study of Order and Creorder]] | first2 = Shimshon | last2 = Bichler | first1 = Jonathan | last1 = Nitzan | year = 2009 | series = RIPE Series in Global Political Economy | location = New York and London | publisher = Routledge}}</ref>