Net present value (NPV) - Definition
The present value of an asset's Net Cash Flows (minus any initial investment).
Net present value is sometimes referred to has net present worth (NPW) and is considered a standard method used for capital budgeting, and more widely throughout economics.
Net present value is also a good technique for avoiding the distortions caused by historical accounting conventions.
The discounted cash flow is similar.
Related Glossary terms








