##  [Net Present Value Method](/net-present-value-method) 

  ##  [Net Present Value Method](https://social.quantumdictionary.io/net-present-value-method-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

An investment appraisal method that computes the net value created by a project as the difference between the present value of expected cash inflows and the present value of cash outflows, typically computed as NPV = Σ CF_t/(1 + r)^t − Initial Investment; a positive NPV indicates the project adds value at the chosen discount rate.