Definition 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...
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
DefinitionFormulas and calculationDecision ruleExamplesStrengths and weaknesses of NPV Home Accounting Capital Budgeting Net Present Value Net Present Value (NPV)Net present value (NPV) of a project represents the change in a company's net worth/equity that would result from acceptance of the ...
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 ...
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) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.
Financial Definition of Net present value and related terms: A discounted cash flow methodology that uses a required rate of return (usually a firm’s cos...
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
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
value of money by discounting the projected cash flows back to the present, using a company'sweighted average cost of capital(WACC). A project or investment's NPV equals the present value of net cash inflows the project is expected to generate,minus the initial capital requiredfor the project...