Free Online Lean Six Sigma Encyclopedia

English |  Español |  Français |  Português |  Deutsch |  中文

Net Present Value (NPV)

Go Back

Definition

The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. (from investopedia.com)

External Links

http://www.investopedia.com/terms/n/npv.asp - NPV Definition, Formula and Video http://en.wikipedia.org/wiki/Net_present_value - Definition and History of NPV