Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Amy is an ACA and the CEO and founder of ...

Raiffa, Howard. "Methods of Calculating Net Present Value and Internal Rate of Return, Programmed Exercises." Harvard Business School Supplement 171-261, December 1970. (Revised May 1991.) ...

Discover how to calculate internal rate of return (IRR) to evaluate investment opportunities and understand their potential returns.

Present value is a useful mathematical formula designed to figure out if money received now is worth more than money received later. What Is Present Value? Terms Associated With the Present Value of ...

Perhaps the most ubiquitous measure of financial health is net worth, and despite its conceptual simplicity, it is often poorly understood by those lacking a background in finance. Two of the easiest ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...