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Present Value - NPV |
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An approach used in capital budgeting where the present value of cash
inflow is subtracted from the present value of cash outflows.
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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, but if it is negative then the project probably should be
rejected because cash flows are negative. |
All
About NPV
- a good quick definition of NPV and a real-life example of a student
loan.
NPV
Analysis - a long, but very good explanation of what NPV is
and how it is used. |
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Dictionary
