What Is Net Present Value (NPV)? Net Present Value is a financial metric used to determine the value of an investment by calculating the difference between the present value of cash inflows and the ...
Credit: By discounting every future $3,000 cash flow back at a rate of 10%, and subtracting the initial cash outlay of $15,000, we arrive at a net present value of $3,433.70 for this project. Under ...