NPV
Today's value of a project's future cash flows minus its upfront cost.
What is NPV?
NPV (Net Present Value) is the value today of all future cash flows an investment is expected to generate, minus the initial cost. Future cash flows are discounted back to the present using a chosen discount rate that reflects the time value of money and risk. A positive NPV suggests the investment is expected to add value, while a negative NPV suggests it destroys value.