How much your investment is worth in today's money. If positive, the business generates more than it costs. If negative, you're overpaying.
↳ Analogía
If NPV is positive, your business is worth more than it costs. If negative, you're overpaying for an asset that doesn't perform.
Ejemplo numérico
NPV > 0: the project creates value — go ahead. NPV = 0: it just clears the minimum required. NPV < 0: it destroys value — drop it.
Initial investment: $100,000. Annual cash flows of $30,000 for 5 years. MARR: 15%. → NPV = +$562. The project covers the MARR but with a thin margin — viable and tight.