Definition of Net Present Value Net present value is the combination of 1) the present value of cash inflows, and 2) the present value of the cash outflows. To arrive at these present value amounts, the future cash flows are discounted by a specified interest rate. The specified rate ...
Definition: Net present value, NPV, is a capital budgeting formula that calculates the difference between the present value of the cash inflows and outflows of a project or potential investment. In other words, it’s used to evaluate the amount of money that an investment will generate compared...
Define net present value. net present value synonyms, net present value pronunciation, net present value translation, English dictionary definition of net present value. n accounting an assessment of the long-term profitability of a project made by addin
Further Reading/Examples: Net Present Value (NPV) Definition | InvestopediaCalculations Upvote Answer Share 1.2K views Log In to AnswerAsk a Question Trending Topics Exports & SubscriptionsGetting Started First Time Here Forum Guidelines Code of Conduct Advertising Policy Explore ForumsView All Topics ...
Definition and Meaning of NPV Net present value is the present value/today’s value of all the cashflows to be generated by an asset in the future. In other words, it is the value that can be derived using an asset. Alternatively, it is the discounted value based on some discount rate...
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...
Financial Definition of Net present value (NPV) and related terms: The present value of the expected future cash flows minus the cost. . A discounted cash...
A definition of the term "net present value" is presented. It refers to the value of an investment calculated as the sum of its initial cost and the present value of expected future cash flows. A positive net present value indicates that the project should be profitable, assuming that the ...
Define Net present value of future investments. Net present value of future investments synonyms, Net present value of future investments pronunciation, Net present value of future investments translation, English dictionary definition of Net present val
How the Net Present Value Rule is Used Net present value, commonly seen incapital budgetingprojects, accounts for thetime value of money(TVM). The time value of money is the idea that future money has less value than presently available capital, due to the earnings potential of the present ...