Definition:
Net Present Value (NPV)
Back to Finance Glossary | Previous Page
The net present value (NPV) of a series of cash flows is the sum of the present values (PVs) of the individual cash flows.NPV can be calculated as the sum of each cash flow's present value, using the formula:
Present Value = Future Value / (1 + Discount Rate) ^ Number of periods
Latest Articles Related to Net Present Value (NPV)
Read: 4,372 times
Back to Finance Glossary | Previous Page
This web site is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any securities. The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable.