Incredible The Net Present Value Of An Investment Represents The Difference Between The Investment's References. Net present value (npv) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. The lower the cost of your opportunity or risk, the less your value will be affected.
Npv accounts for the value of time, value of money, and cash flows (inflows and outflows) in a given period of time. Solution for the net present value of an investment represents the difference between the: Put simply, npv is used to work out how much money an investment will generate compared with the cost adjusted for the time value of money (one dollar today is worth more than one dollar in the future).