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

“At spot gold prices of US$4,831/oz, we see 82% upside to our net present value for Northern Star,” Jefferies says.

From The Wall Street Journal • Jan. 23, 2026

Haissl asserted that each dollar invested in generative AI infrastructure produces only about 20 cents of net present value, a measure that compares the value of cash inflows and outflows to gauge profitability.

From Barron's • Nov. 18, 2025

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