Net Present Value (NPV) is a financial concept used to evaluate the profitability of an investment or project by calculating the present value of its expected cash flows, discounted at an appropriate discount rate. NPV measures the difference between the present value of cash inflows (such as revenues, savings, or benefits) and the present value of cash outflows (such as investments, expenses, or costs). A positive NPV indicates that the investment is expected to generate value and exceed the required rate of return, while a negative NPV suggests that the investment is not financially viable.
"Dollars today > Dollars tomorrow 💵⏳ The valueof money depends on when you get it."
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