What is NPV (Net Present Value)? How to calculate it

Net present value (abbr. NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in DCF (Discounted Cash Flow) financial model to analyze the profitability of a projected investment or project. NPV is the result of calculations used to find the current value of a future stream of payments.

One thought on “What is NPV (Net Present Value)? How to calculate it”

Leave a Reply