net present value
Noun
Meaning
net present value (plural net present values)
(finance) The present value of a project or an investment decision determined by summing the discounted incoming and outgoing future cash flows resulting from the decision.
Synonyms
Examples
Net present value (after tax) of Thailand proved plus probable crude oil reserves at December 31, 2017, using forecast prices and costs discounted at 10% per year, of Cdn$28.0 million.
Net present value (NPV) is determined by calculating the costs (negative cash flows) and benefits (positive cash flows) for each period of an investment.