Net present vawe is?
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In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money.
Explanation:
A net present value calculation is an effective tool used to evaluate projects based on cash outflows and inflows. The NPV discounts cash flows to a present value and allows the evaluator to compare projects based on the results.
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