InvestorWords.com
net present value rule
Definition
Financing principle that in investment proposals where costs occur immediately but returns are received over several future periods, only the proposals with positive net present value should be considered. In situations where costs and returns are practically simultaneous, the 'marginal cost equals marginal revenue' rule is applied.
Recommended Articles from InvestorGuide.com
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



