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Concept10 min read
Net Present Value (NPV)
The sum of all future cash flows discounted back to today, minus the initial investment. NPV is the gold standard for investment decisions — positive NPV creates value, negative destroys it.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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