net present value


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Related to net present value: Internal rate of return, Discounted cash flow, Payback period

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.
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.
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.
This article demonstrates how to use a decision tool called net present value (NPV) analysis to evaluate a project's long-term financial costs and benefits.
Contingency payments up to a net present value of $167 million may also be made if realized margins for polypropylene and phenol exceed certain agreed upon thresholds.
In order to find the nature of investment the basic investment appraisal criterion, the Net Present Value of the discounted revenue streams, will be used.