From Longman Business Dictionarynet present valueˌnet ˌpresent ˈvalue written abbreviation NPV [countable, uncountable] ACCOUNTINGFINANCEthe value of the income from a business investment using a particular percentage to calculate its DISCOUNTED CASH FLOW (=the money it will bring in the future, reduced at a particular rate to take account of the delay in receiving it). The rate is based on present interest rates increased by an amount to take account of risk. If, using this rate, the NPV is positive in relation to the cost of the investment, the investment will be profitableBy investing in projects that have positive net present value, finance managers will create value. → value
