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Net Present Value

NET PREZ-unt VAL-yoo

/nɛt ˈprɛzənt ˈvæljuː/

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Syllable breakdown

Netpresentvalue

Dictionary meaning

The difference between the present value of cash inflows and outflows over a period.

Examples

  • A positive NPV confirms the project will generate more value than it costs.

Pronunciation tips

Three words. Abbreviated NPV. 'Present': stress on first syllable.

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