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What is "NPV" in relation to a business or a project? How is it calculated and how does it work?

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What is "NPV" in relation to a business or a project? How is it calculated and how does it work?

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  1. NVP= net present Value.  NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield.  NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative

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