The NPV formula, or Net Present Value formula, is a financial calculation used to determine the present value of a series of future cash flows generated by an investment, minus the initial investment cost. It helps in assessing the profitability of a project by calculating whether the projected earnings (in present dollars) exceed the anticipated costs. A positive NPV indicates that the investment is likely to be profitable, while a negative NPV suggests that it may result in a loss.
congrats on reading the definition of NPV Formula. now let's actually learn it.