Project viability assessment through Net Present Value (NPV)
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| − | The '''net present value (NPV)''' is a financial metric, widely used in project management to determine whether a given project is worth commencing | + | The '''net present value (NPV)''' is a financial metric, widely used in project management to determine whether a given project is worth commencing (source). For a given project to be considered a profitable investment, a minimum requirement is that NPV > 0. (source) NPV is calculated by aggregating the streams of costs and benefits over a given time period associated with a project into a single value. |
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Revision as of 19:07, 12 February 2023
Abstract
The net present value (NPV) is a financial metric, widely used in project management to determine whether a given project is worth commencing (source). For a given project to be considered a profitable investment, a minimum requirement is that NPV > 0. (source) NPV is calculated by aggregating the streams of costs and benefits over a given time period associated with a project into a single value.
