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NPV

Technical Finance Acronym Finance

Net Present Value. All future cash flows discounted to today's dollars, because a dollar next year is worth less than one now. Positive NPV good, negative bad, arguments about the discount rate eternal.

Heard in the wild

“At an 8% discount rate the project's NPV is solidly positive.”

Tone check: Technical

The discount rate assumption hides the whole argument. Ask what rate they used and watch the room.

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