Dictionary, Encyclopedia and Thesaurus - The Free Dictionary

1,506,162,342 visitors served.

forum mailing list For webmasters

New: Language forums

Dictionary/
thesaurus

Medical
dictionary

Legal
dictionary

Financial
dictionary

Idioms

Encyclopedia

Wikipedia
encyclopedia

net present value

Also found in: Dictionary/thesaurus, Acronyms, Wikipedia, Hutchinson

0.30 sec.

Net present value (NPV)

The present value of the expected future cash flows minus the cost.

net present value

The discounted value of an investment's cash inflows minus the discounted value of its cash outflows. To be adequately profitable, an investment should have a net present value greater than zero. For investment in securities, the initial cost is usually the only outflow.

net present value

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, say, two years, is greater than or equal to $500,000, then the investment will likely be profitable. See also: Present value.

How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link
Email

Feedback
Add definition

? Mentioned in

Basic IRR rule
Cost-benefit ratio
Crossover rate
Discretionary cash flow

Equivalent annual benefit
Equivalent annual cash flow
Extraordinary positive value
internal rate of return

Multiple rates of return
Negative NPV tie-in project
Net advantage of refunding
Net advantage to leasing

Net present value of future investments
Net present value of growth opportunities
Net present value rule
NPV

Present value of growth opportunities
Value additivity principal

Financial browser

? Full browser

Net operating loss carryforwards
Net operating losses
Net operating margin
Net parity
Net period
net plant and equipment
Net position
net present value
Net present value of future investments
Net present value of growth opportunities
Net present value rule
net proceeds
net profit
net profit margin
net quick assets

Net PC
Net PC
net per-capita income
Net Performance Margin
Net period
Net Periodic Pension Cost
Net Personnel and Operating Costs
Net phone
Net phone
net plant and equipment
Net porn service
Net Portal Amino Acid Appearance
Net Portal Dynamic System
Net position
Net Positive
Net Positive

Net Positive
Net Positive Suction Head
Net Positive Suction Head Available
Net Positive Suction Head Required
Net Premium Earned
Net premium valuation
Net Premiums Written
Net Present Cost
net present value
Net present value of future investments
Net present value of growth opportunities
Net present value of growth opportunities
Net present value rule
net present values
net present values
net present values
net present values

Net Present Worth
Net Primary Production
Net primary productivity
Net primary productivity
Net Primary Productivity for Chapel Hill
net private capital inflows
Net proceeds
Net Proceeds of Sale
Net processor
Net processor
net profit
net profit
net profit
net profit
net profit
net profit

Financial Dictionary

Free Tools:	For surfers: Browser extension \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup \| Partner with us

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.