NPV

abbreviation

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Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

In this example, we know that 10 percent is not the IRR because it did not make the NPV zero.

Lowering the interest rate makes the NPV higher.

One more calculation using a 14 percent interest rate gets us an NPV of $100.88, which we determine to be close enough.

If we try nine percent, we get an NPV of $105.50.

If we try an interest rate of 12 percent, we get an NPV of $102.68.

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