Net Present Value [NPV]By Dennis Hill / January 1, 2025 The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project[1]. Defined Terms 1. ↑ project. An interrelated set of tasks with a beginning and an end that is bounded by time, resources, costs and desired results.
