Reveal the appraisal method boosting your investment returns
The Importance of Net Present Value (NPV)
Net Present Value (NPV) is one of the most widely used appraisal methods. It calculates the present value of cash flows generated by an investment, subtracting the initial investment cost. A positive NPV indicates a profitable investment, while a negative NPV suggests a loss. This method considers the time value of money, making it a reliable indicator of an investment's potential1.