net present value


Also found in: Financial, Acronyms, Encyclopedia, Wikipedia.

net present value

n
(Accounting & Book-keeping) 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. Abbreviation: NPV
References in periodicals archive ?
To briefly summarize Fuller's main point: the net present value criterion demonstrates that there is a "switching" from one type of investment project to another as interest rates change.
of Crest Engineering Services, using a 10% discount rate, to have proved reserves of 19,820 net barrels of oil with a net present value of US$180,000, possible reserves of 45,160 net barrels of oil with a net present value of US$707,000 for total reserves of 64,990 barrels of oil with a net present value of US$888,000.
Further, the revised report also includes sensitivity analysis for a range of gold prices up to USD1,100 per ounce, where net present value for the Golden Rose rises to 20.
W takes exception to the Tax Court's calculation of LP's net present value, based on a 25-year useful life for the EMS.
In this study, the net present value for each project is calculated from the perspective of the landowner and the results indicate the present value of return over costs to the landowner.
Leases with a net present value of less than pounds 150,000 will be exempt.
Then, the r value, which causes the net present value (NPV)--the modified term on the left of the equal sign--to equal zero, would be the internal rate of return.
Based on the projection of cash flows over a five-year period, the investment reveals a positive net present value of $5,000.
Stamp duty is then charged at 1pc on the net present value.
A 10-year calculation of total operating savings and net present value of those savings with an all-electric machine is displayed in a printable chart.