The author and editors take ultimate responsibility for the content. Net present value (NPV) is a number investors calculate to determine the profitability of a proposed project. NPV can be very ...

Would you rather have $100,000 today or $1,000 a month for the rest of your life? Net present value (NPV) provides a simple way to answer these types of financial questions. This calculation ...

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. By contrast, the internal rate of return (IRR ...

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.