Net Present Value
How to Calculate Net Present Value
Net present value (NPV) is a calculation used in corporate finance and capital budgeting to determine whether a company should invest in a particular project. It is the future cash flows of an investment discounted to the present value of it today.
Anytime the NPV of a project is greater than $0, the company should invest in it. Anytime a project’s NPV is below $0, the company should avoid investing in it.
Net Present Value Calculator
