Q » Explain the concept of Net Present Value (NPV).

Christopher

01 Nov, 2025

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A » Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project by comparing the present value of expected cash inflows to the initial investment cost. It accounts for the time value of money, discounting future cash flows to their present value using a discount rate. A positive NPV indicates a profitable investment, while a negative NPV suggests potential loss.

Michael

01 Nov, 2025

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A »Net Present Value (NPV) is a financial metric that calculates the present value of future cash flows by discounting them at a specified rate. For instance, if a project generates $100 in a year and the discount rate is 10%, its NPV is $90.91. A positive NPV indicates a profitable investment, while a negative NPV suggests otherwise.

Ronald

01 Nov, 2025

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A »Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It calculates the difference between the present value of cash inflows and outflows over a period of time, using a specific discount rate. A positive NPV indicates a profitable investment, while a negative NPV suggests a loss. NPV helps investors make informed decisions by considering the time value of money.

Edward

01 Nov, 2025

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A »Net Present Value (NPV) is a financial metric that calculates the present value of expected future cash flows from an investment, discounted by the cost of capital. It helps determine whether an investment is profitable by comparing the initial investment to the present value of future returns, with a positive NPV indicating a viable investment opportunity.

Steven

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment. It calculates the present value of expected future cash flows minus the initial investment cost. For example, if an investment of $1,000 returns $1,100 in a year with a discount rate of 5%, the NPV is approximately $47.62, indicating a profitable investment since NPV is positive.

Charles

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric that calculates the present value of expected future cash flows from an investment, minus its initial cost. It helps determine whether an investment is profitable by comparing its present value to its cost, with a positive NPV indicating a potentially profitable investment.

Anthony

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It represents the difference between the present value of cash inflows and outflows over a period of time, discounted at a particular rate. A positive NPV indicates that the projected earnings exceed the anticipated costs, suggesting a potentially profitable investment, while a negative NPV suggests the opposite.

Matthew

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric that calculates the present value of expected future cash flows from an investment, discounted by the cost of capital. For example, if a project costs $1000 and generates $1200 in 2 years, with a 10% discount rate, NPV = -$1000 + $1200/(1+0.1)^2 = $90.91, indicating a profitable investment.

Daniel

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric that evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over time, using a specific discount rate. A positive NPV indicates a potentially profitable investment, while a negative NPV suggests it may not be worthwhile. NPV helps investors assess and compare the value of different projects or investments.

Joseph

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric that calculates the present value of expected future cash flows from an investment, discounted at a specified rate. It helps investors determine the profitability of a project by comparing the initial investment with the present value of future returns, thereby facilitating informed decision-making.

William

01 Nov, 2025

0 | 0

A »Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment. It calculates the present value of future cash flows minus the initial investment cost. For example, if a project costs $1,000 today and is expected to yield $1,200 in a year with a discount rate of 5%, the NPV is $1,142.86 - $1,000 = $142.86, indicating a profitable investment.

James

01 Nov, 2025

0 | 0