Answer / sridhar

Net present value (NPV) is a standard method for the
financial appraisal of long-term projects. Used for capital
budgeting, and widely throughout economics, it measures the
excess or shortfall of cash flows, in present value (PV)
terms, once financing charges are met. By definition,


NPV = Present value of net cash flows

Where

t - the time of the cash flow

n - the total time of the project

r - the discount rate

Ct - the net cash flow (the amount of cash) at time t.

C0 - the capital outlay at the beginning of the investment
time ( t = 0 )

Answer / viplaw

value of future csh flow in present

Answer / mehraj wani

Net Present Value is the Difference between the PV of Cash
inflows and the PV of Cash outflow. The NPV is the
technique that takes into account the Time Value of Money.
NPV is a capital budgeting technique to check the
feasibility / viability of a project. If NPV is equal to
zero or greater than Zero(NPV is Positive)than the project
is considered to be viable otherwise not feasible.

Answer / chandrasekhar hota

NPV = Present Value of cash inflows - Present Value of cash
outflows.

Answer / mani kandan

the difference between present outflow of cash and expected
future cash inflow

Answer / guest

its refers to the difference between present value of cash
inflows and cash outflows.

Answer / nitya

In long term planning decision for investment and their
financing,net present value is being calculated..
for this we need to know the future value of cashflows by
summing up the present value of cashflows per year and
deducting the same from the cashoutflows.

Answer / alok jalan

NPV is the present value of the future Cash inflows

Answer / alok jalan

NPV is an approach used in capital budgeting where the
present value of cash inflows is subtracted by the present
value of cash outflows. NPV is used to analyze the
profitability of an investment or project.

NPV analysis is sensitive to the reliability of future cash
inflows that an investment or project will yield

Answer / abhishek

Difference between the intial investment and the present
value of the future cash inflows.

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