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.

Use Net Present Value in a sentence

You need to accurately asses the net present value before you decide it is time to sell the things you owe.

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The net present value was really astounding and we were all very excited to see any further developments in the future.

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They decided to run a Net Present Value analysis to determine if they should make the investment into buying the new technology.

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adjusted present value (APV) investment appraisal