Net present value
Net present value
Glossary of business
Definition of net present value
The net present value is used in investment appraisal to try to establish the value of future returns of income and expenditure. Future incomes will be less valuable now and so they are discounted (using a discount rate) to give their current value. The net present value is the value today of future incomes less any costs.
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Terminology about business
Job world
Definition and meaning of net present value
Meaning of net present value
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