NPV Definition

NPV

Definition

Net Present Value. 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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Related Terms on BusinessDictionary

discounted cash-flow (DCF)
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capital rationing
cost benefit analysis (CBA)

investment appraisal
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internal rate of return (IRR)

Popular 'Accounting' Terms

current ratio
equity
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Nearby Terms

notional value
notorious possession
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NOW
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