Definition
NPV is a financial metric that calculates the present value of a series of future cash flows, discounted at a specific rate to account for time value of money.
Related Services
Financial analysis, investment advisory, and project evaluation services help businesses calculate NPV to assess the profitability and feasibility of investments.
Problem and Application
NPV is an essential tool for evaluating long-term investments, but it requires accurate projections and an appropriate discount rate for meaningful results.
Conclusion
NPV is a critical metric for investment decision-making, helping businesses determine whether a project or investment will generate a positive return.
