Interested to learn about the potential tax savings associated with angel investing? Sign up for our upcoming webinar →

< Back to blogs < Back to Glossary

Net Present Value

Net Present Value (NPV) is the estimated value of future cash flows over the anticipated life of an investment discounted to the present. NPV analysis is used extensively across finance and accounting for estimating the value of a business, investment security, capital project, new venture, cost reduction program, and anything that involves cash flow. NPV analysis is used to help determine how much an investment, project, or any series of cash flows is worth.

Categories: