Net Present Value Definition

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Net Present Value

Definition

NPV. The present value of an investment's future net cash flows minus the initial investment. If positive, the investment should be made (unless an even better investment exists), otherwise it should not.

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'Net Present Value' appears in the definitions of these other terms on BusinessDictionary.com

internal rate of return (IRR), abandonment value, calculated intangible value (CIV), discounted cash-flow (DCF), cost benefit analysis (CBA), and

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