net present value

net present value(NPV) A method of capital budgeting in which the value of an investment is calculated as the total present value of all cash inflows and cash outflows minus the cost of the initial investment. If the net present value is positive, the return will be greater than that required by the capital markets and the investment should be considered. A negative net present value indicates that the investment should be rejected. Many spreadsheet programs now include a calculator for NPV. See alsodiscounted cash flow.

• finite capacity loading
• fire insurance
• firewall
• firmware
• first-class paper
• first-in-first-out cost
• first-loss policy
• first mortgage debenture
• first notice day
• first preferred stock
• first-tier market
• first-year allowance
• fiscal agent
• fiscal policy
• fiscal year
• fish-bone diagram
• fixed asset
• fixed capital
• fixed capital formation
• fixed charge
• fixed debenture
• fixed exchange rate
• fixed-for-floating
• fixed-interest security
• fixed overhead cost