Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.
Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...
A discount rate is a percentage rate that investors use to measure the value of future cash flows in today's dollars. A discount rate has a wide variety of applications in terms of analyzing ...