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 ...

How to calculate the present value of an ordinary annuity Present value of an annuity refers to how much money must be invested today in order to guarantee the payout you want in the future.

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

When planning for retirement, you need to account for the value of any annuities that you own. Trouble is, there’s not just one value of an annuity—there are two: present value and future ...

How to Link NPV to Free Cash Flow. The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow ...

When net present value is less than zero, the project is expected to lose money. Projects with a negative net present value should be avoided.