NPV
Net Present Value
Investment PlanningThe difference between the present value of cash inflows and outflows over time. Used to analyze the profitability of an investment.
Formula
NPV = Σ[Ct / (1 + r)^t] - C0
Why it matters
Positive NPV means the investment is expected to generate value. Widely used in capital budgeting and project evaluation.
Indian example
Related terms
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