• See: Net present value.
• See Net Present Value.
| ||Embedded terms in definition|
| ||Net present value|
| ||Referenced Terms|
| ||Annualized net present value anpv approach: An approach to evaluating unequal-lived projects that converts the net present value of unequal-lived, 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.Dollar-weighted 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|