The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow analysis, which assesses future cash ...
David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.
Cash flow is essential to the success of your business. Your business can survive for a while if it is unprofitable, but it will not last long if it does not have the cash to pay its bills.
NPV calculates profitability by considering all cash flows and the time value of money. A positive NPV indicates a potentially profitable investment opportunity. NPV's effectiveness relies on accurate ...