Intro to Real Estate Finance
Net present value (NPV) is a financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a specified time period. NPV is crucial for understanding the potential return on investment, assessing risk, and determining project feasibility, as it helps investors decide whether to proceed with a project based on whether the NPV is positive or negative.
congrats on reading the definition of net present value (NPV). now let's actually learn it.