Extraordinary positive value(redirected from Extraordinary Positive Values)
Extraordinary positive value
A positive net present value.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved