Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
Projects with a positive NPV should be considered if financial value is a key criterion. The higher the NPV, the better.
NPV is used in project selection and is a recommended tool for the Project Management Body of Knowledge (PMBOK) in the Project Integration knowledge area.
