Net Present Value
January 22, 2014 | | Kris Tabetando | 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.
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