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...
Thenet present valueof an investment divided by the investment's initial cost. Also called the profitability index. Crossover rate The return at which two alternative projects have the samenet present value. Equivalent annual benefit The equivalent annual annuity for thenet present valueof an invest...
While the finance discipline focuses on the added value of a capital investment project to the firm's assets (NPV_A), the real estate discipline typically looks at the impact on the firm's equity investors (NPV_E). The two approaches will generate the same value provided that the project ...
Net Present Value (NPV) is the value of all futurecash flows(positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively acrossfinanceand accounting for determining the value of a business, investm...
net annual value in the Finance topic by Longman Dictionary of Contemporary English | LDOCE | What you need to know about Finance: words, phrases and expressions | Finance
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
Net present value or NPV is a very well-known technique for analysis in the arena of finance. Net present value is equal to the present value of all the future cash flows of a project less the project’sinitial outlay. It is very important and helpful in arriving at the decisions related...
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...
While PV is useful, NPV is invaluable to capital budgeting. A project with a high PV may actually have a much less impressive NPV if a large amount of capital is required to fund it. As a business expands, it looks to finance only those projects or investments that yield ...
NPV, or Net Present Value, in finance, is a way to measure how much value an investment or project might add. It calculates the difference between the present value of cash inflows and outflows over a period. Basically, it helps decide if an investment is worth it by considering both the...