Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
 | | Term of the Day | Words to Know | | |  | | Net Present Value (NPV) | | Net present value (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 capital budgeting and investment planning to analyze the profitability of a projected investment or project. | | Read More » | | Related to "Net Present Value (NPV)" | | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Capital Budgeting | | Capital budgeting is a process a business uses to evaluate potential major projects or investments. It allows a comparison of estimated costs versus rewards. | | Read More » | | | Net Present Value Rule | | The net present value rule (NPV) states that an investment should be accepted if the NPV is greater than zero, and it should be rejected otherwise. | | Read More » | | | Payback Period | | The payback period refers to the amount of time it takes to recover the cost of an investment or how long it takes for an investor to hit breakeven. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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