WordValeexpression
net present value
today's value of a future stream of cash flows
In more detail
A method of evaluating the profitability of an investment by calculating the difference between the current value of all expected future cash flows and the initial investment cost, accounting for the time value of money.
Examples
- The company calculated the net present value of the new factory project before deciding whether to proceed with the investment.
Learn it for good
Save this word in WordVale and it comes back for review right before you'd forget it — with pronunciation, real examples, and optional translations. One purchase, no subscription.
Get WordValeFREE 7-DAY TRIAL · iPHONE & iPAD