Related to net present value:Internal rate of return,Discounted cash flow,Payback period n (Accounting & Book-keeping)accountingan assessment of the long-term profitability of a project made by adding together all the revenue it can be expected to achieve over its whole life and deducting all ...
(redirected from Net present value of future investments)Also found in: Financial. net present value n (Accounting & Book-keeping) accounting an assessment of the long-term profitability of a project made by adding together all the revenue it can be expected to achieve over its whole life ...
Definition:TheNet Present Valueor NPVis a discounting technique of capital budgeting wherein the profitability of investment is measured through the difference between the cash inflows generated out of the cash outflows or the investments made in the project. The formula to calculate the Net Present...
The net result of combining the discounted cash inflows and the discounted cash outflows of an investment, project, company, etc. Related Q&A What is the difference between Present Value (PV) and Net Present Value (NPV)? What is net present value? How do I calculate IRR and NPV? Do I ...
The meaning of PRESENT VALUE is the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date.
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.
net present value inFinance topic From Longman Business Dictionaryˌnet ˌpresent ˈvaluewritten abbreviationNPV[countable, uncountable]thevalueof theincomefrom a businessinvestmentusing a particularpercentagetocalculateitsDISCOUNTEDCASHFLOW(=the money it will bring in thefuture,reducedat a particularrate...
Net present value (NPV) of a project is the present value of net after-tax cash inflows of the project determined at a risk-adjusted discount rate, less the initial investment. It is the most reliable capital budgeting technique.
NPV (net present value of cash flows) Same aspv, but usually includes a subtraction for an initial cash outlay. PV (present value of cash flows) thevaluein today’s dollars of cash flows that occur in different time periods. present valuefactor equal to the formula 1/(1 - r)n, where...
During the company's decision-making process, it will use the net present value rule todecide whether to pursue a project, such as an acquisition. If the calculated NPV of a project is negative (< 0), the project is expected to result in a net loss for the company. As a result, and...