Net Present Value

January 22, 2014  |     |     |   0 Comment

Net present value (NPV) is the difference between the present value of cash outflows and cash inflows. It is a calculation used to assess how profitable an investment could be. It analyzes the value of a dollar today relative to that same dollar tomorrow.

Excluding other investment indicators, a positive NPV means a project is a good investment and a negative NPV means it is a bad investment.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

    Connect with Kris:
  • linkedin
« Back to Glossary Index

Comments are closed.