For Net Present Value (Npv) we have terms and definitions in 6 topics. The topics are Accounting, Commercial Real Estate, Finance, Financial Modeling, International Business and Real Estate.

Net Present Value (Npv) (Accounting)

is a method used in evaluating investmentswhereby the net present value of all cash outflows (such as the cost of the investment) and cash inflows (returns) is calculated using a given discount rateusually REQUIRED RATE OF RETURN. An investment is acceptable if the NPV is positive. In capital budgetingthe discount rate used is called the HURDLE RATE and is usually equal to the INCREMENTAL COST OF CAPITAL.

Net Present Value (Npv) (Commercial Real Estate)

The value of the lease once all costs of doing a transaction are deducted from the gross income of a lease.

Net Present Value (Npv) (Finance)

The present value of the expected future cash flows minus the cost.

Net Present Value (Npv) (Financial Modeling)

The value of a stream of cash over time, discounted to a selected "hurdle" rate of interest.

Net Present Value (Npv) (International Business)

The present value of future cash returns, discounted at the appropriate market interest rate, minus the present value of the cost of the investment.

Net Present Value (Npv) (Real Estate)

Net present value usually is employed to evaluate the relative merits of two or more investment alternatives. It is calculated as the sum of the total present value of incremental future cash flows plus the present value of estimated proceeds from sale. Whenever the net present value is greater than zero, an investment opportunity generally is considered to have merit.

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