Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...
Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...
Present value calculates today's worth of future cash flows using a discount rate. Use present value to choose between investments by comparing future cash inflows. Learning to calculate present value ...