• See: Net present value.

• See Net Present Value.

 Embedded terms in definition
 Net present value
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

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