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Indicator NPV is the difference between all cash inflows and outflows, cast to the current point in time (the time of the investment project evaluation). It shows the amount of money that an investor expects to receive from the project, after the cash inflows recoup his initial investment costs and recurrent cash outflows related to the implementation of the project. Since the cash payments are estimated taking into account their time value and risk, NPV can be interpreted as the cost, adds the project. It can also be interpreted as the total income of the investor.
The PV is the current or present value of a single amount discounted at a specific rate. On the other hand, NPV is the aggregate net income of set of future number of years discounted at a specific rate .
