net present value

British  

noun

1.  NPV.  accounting an assessment of the long-term profitability of a project made by adding together all the revenue it can be expected to achieve over its whole life and deducting all the costs involved, discounting both future costs and revenue at an appropriate rate

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Example Sentences

Adjustments for capital expenditure, a new mine schedule and higher operating costs drive a A$5.1 billion—or 55%—reduction in the net present value Macquarie attributes to the project.

From The Wall Street Journal • May 1, 2026

“A much bigger unwind remains the risk for global equity markets as higher energy prices dampen growth prospects, while higher longer-dated interest rates sap the net present value earnings of the growth stocks,” he added.

From Barron's • Mar. 9, 2026

Next, lower rates increase the net present value of companies with distant earnings, by reducing the discount rate in valuation models.

From MarketWatch • Nov. 3, 2025

As the historian William N. Goetzmann has written, the related idea of net present value "is the most important tool in modern finance."

From Science Daily • Jun. 6, 2024

Stock investors who apply fundamental analysis to the positions taken in the market will often encounter net present value calculations when they review financial statements and reports.

From Encyclopedia.com • Apr. 9, 2018