Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.
Rey Adams is an economist and writer. He has 15+ years of professional experience in investment management and consulting. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...
The net present value (NPV) method can be a very good way to analyze the profitability of an investment in a company, or a new project within a company. But like many methods in finance, it is not the ...