Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Net Present Value (NPV)
« Back to Glossary IndexCategory: Business Valuation
In the context of business valuations and investment analysis, Net Present Value (NPV) is a financial metric that evaluates the profitability of an investment by comparing the present value of expected cash inflows with the present value of expected cash outflows over time. NPV is used to assess the attractiveness of an investment opportunity and to make informed decisions about whether to proceed with an investment. NPV is a fundamental tool in financial analysis, helping businesses and investors assess the economic viability of projects, acquisitions, or other investment opportunities. It considers the timing and magnitude of cash flows, providing a comprehensive measure of the value created by an investment.
« Back to Glossary IndexAcronym:
NPV
French Translation: