Npv 
 • See: Net present value. 
 • See Net Present Value. 

 Embedded terms in definition 
 Net present value Net Present value


 Referenced Terms 
 Annualized net present value anpv approach: An approach to evaluating unequallived projects that converts the net present value of unequallived, mutually exclusive projects into an equivalent (in Npv terms) annual amount.

 Conflicting rankings: Conflicts in the ranking of a given project by Npv and IRR resulting from differences in the magnitude and timing of cash flows.

 Cross over rate: The discount rate where Npv profiles intersect meaning the NPVs of the two projects are equal, and where the ranking decision for the projects changes.

 Discretionary cash flow: Cash flow that is available after the funding of all positive Npv capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on.

 Internal rate of return: Abbreviated IRR. The discount rate that equates the present value of cash inflows with the initial cost of a capital budgeting project; the discount rate that makes the Npv of the project equal to $0.Dollarweighted rate of return. Discount rate at which net present value (Npv) investment is zero. The rate at which a bond's future cash flows, discounted back to today, equals its price.


 Related Terms 
 Npv profile
