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What does NPV represent?

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Question added by Sultan Alghamdi
Date Posted: 2016/01/30
Shalima Bibi Maunick
by Shalima Bibi Maunick , Accounts Officer , Kabelek Engineering Ltd

Net Present Value. The NPV is a metric that is able to determine whether an investment opportunity is a smart financial decision. NPV is the present value (PV) of all the cash flows (with inflows being positive cash flows and outflows being negative), which means that the NPV can be considered a formula for revenues minus costs.

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