NPV (Net Present Value)
InvestingThe difference between the present value of cash inflows and outflows over a period — used to evaluate investment profitability.
Example
Example: Consider an investor building a $100,000 portfolio. NPV (Net Present Value) — the difference between the present value of cash inflows and outflows over a period — — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.