net present value

net present value
NPV The value of an investment derived from comparisons of costs with the present value of anticipated future, incremental *cash flows. The *present value of cash flows is calculated by applying an appropriate *cost of capital rate to each period’s cash flows. This approach recognizes the *time value of money. See also the *internal rate of return.

Auditor's dictionary. 2014.

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  • net present value — (NPV). The value of future cash flows, discounted to today s value. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Net present value — In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when… …   Wikipedia

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  • net present value — ( NPV) The present value of the expected future cash flows minus the cost. Bloomberg Financial Dictionary * * * net present value net present value ➔ value1 * * *    ► See Present Value. * * * …   Financial and business terms

  • net present value — NPV A method of capital budgeting in which the value of an investment is calculated as the total present value of all cash inflows and cash outflows minus the cost of the initial investment. If the net present value is positive the investment… …   Big dictionary of business and management

  • Net Present Value — Die Artikel Kapitalwert und Discounted Cash Flow überschneiden sich thematisch. Hilf mit, die Artikel besser voneinander abzugrenzen oder zu vereinigen. Beteilige dich dazu an der Diskussion über diese Überschneidungen. Bitte entferne diesen… …   Deutsch Wikipedia

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  • Net Present Value Of Growth Opportunities - NPVGO — A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. The net present value of growth opportunities is used to determine the intrinsic value of a new project or… …   Investment dictionary

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  • Net present value of growth opportunities — A model valuing a firm in which net present value of new investment opportunities is explicitly examined. The New York Times Financial Glossary …   Financial and business terms

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