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What is Net Present Value (NPV)?

April 26, 2017NET npv PRESENT value

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What is Net Present Value (NPV)?

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NPV is present value of future cash flows. NPV compares value of money today to the value of that money in the future taking inflation & returns into account. If the NPV of a project is positive then the project is financially viable. If NPV of a project is negative the project is not viable.