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

We found that none of the airports would install a heated runway because it wouldn’t yield a positive net present value of benefits.

From The Wall Street Journal • Dec. 31, 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

A 2016 study External link by the National Academies of Sciences, Engineering, and Medicine estimated the average immigrant contributes a net present value of $259,000 to federal, state, and local governments.

From Barron's • Oct. 9, 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