|
Net Present Value - NPV
What does it mean?
An approach used in capital budgeting where the present value of cash inflow is subtracted from the present value of cash outflows.
In Other Words...
NPV compares the value of a dollar today versus the value of that same dollar in the future, after taking inflation and return into account.
If the NPV of a prospective project is positive, then it should be accepted. However, if it is negative, then the project probably should be rejected because cash flows are negative.
Related Links
Sorry, there are no related links.
Related Terms
Capital Budgeting | Cash Flow | Discounted Cash Flow - DCF | Internal Rate of Return - IRR | MIRR | Payback Period | Present Value - PV | Time Value of Money
1 |
A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
|
