Simple English definitions for legal terms
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NPV: NPV stands for net present value. It is a way to figure out if an investment is worth it. It takes into account how much money you will make in the future and how much it will cost you to invest that money now. If the NPV is positive, it means the investment is a good idea. If it is negative, it means the investment is not worth it.
NPV stands for net present value. It is a financial term used to evaluate the investment potential of a project. It is calculated by finding the present value of net cash flow from a project and then discounting it by the cost of capital.
These examples illustrate how NPV is used to evaluate the profitability of an investment. A positive NPV indicates that the investment is profitable, while a negative NPV indicates that the investment is not profitable. It helps investors make informed decisions about whether to invest in a project or not.