What is Net Present Value? NPV stands for Net Present Value. It is a fundamental financial metric, frequently discussed in financial management and capital budgeting. It’s crucial in determining the financial viability of an investment using the NPV formula. The NPV formula involves subtracting the present value of costs (initial investment and ongoing expenses) from the present value of anticipated gains, guiding NPV calculations. NPV may be beneficial as it helps in understanding the time value of money, matching long-term goals,, and knowing the time value of money.
What is Net Present Value?
