NPV (Net Present Value) translated into Vietnamese: Net present value, is the present value of the entire future project cash flow discounted to the present.
NPV is used in capital budgeting and investment planning to analyze the profitability of a project or an expected investment.
The NPV method is derived from the idea that the present money has a higher value, along with the future money, since inflation and income from alternative investments can be made over a period of time. In other words, a coin earned in the future will not be as valuable as a coin earned in the present.
