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Net present value (NPV)

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Definition

Net present value (NPV) is a standard method for the financial appraisal of long-term projects. Used for capital budgeting, and widely throughout economics, it measures the excess or shortfall of cash flows, in present value (PV) terms, once financing charges are met. <a href="http://en.wikipedia.org/wiki/Net_present_value">Source</a>

Formula

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Tags

project, cash, cash flow, capital, budget

Metadata

Category: Investment · Added: May 17, 2026

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