Extraordinary positive value

Extraordinary positive value

A positive net present value.

Extraordinary Positive Value

A positive net present value. A net present value is a measure of discounted cash inflow to present cash outflow to determine whether a prospective investment will be profitable. For example, if a dentist wishes to purchase a new dental practice, he may calculate the net present value over a number of years to see if he will recover his investment in a reasonable period of time. If the ask price for the dental practice is $500,000, this is the present cash outflow used in the calculation. If the discounted cash inflow over two years is greater than $500,000, then the investment has an extraordinary positive value and will likely be profitable.
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