Concept information
Preferred term
net present value
Definition
- The net present value (NPV) of an investment is the present value of all the expected future cash flows less the initial investment. If the NPV is positive, then the investment recovers all of the initial investment and more, while taking into account the time value of the cash flows (see entry for Time Value of Money). [Source: Encyclopedia of Health Care Management; Net Present Value (NPV)]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/net_present_value
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