7.9 : صافي القيمة الحالية

Net Present Value is a capital budgeting technique used to evaluate the profitability of an investment or project.

It calculates the difference between the present value of cash inflows and outflows over time.

Net Present Value helps understand the potential earnings from an investment by discounting future cash flows to their present value, considering the time value of money.  

For example, consider an electronic manufacturing company that requires an initial investment of a hundred thousand dollars in a new project.

It is expected to generate net cash inflow of thirty thousand dollars for the next five years.

The Net Present Value is calculated considering the discount rate of ten percent.

This discount rate reflects the investment risk and the opportunity cost of capital, which is the return foregone by investing capital elsewhere.

The importance of Net Present Value in business lies in its ability to indicate the profitability and risk of potential investments.

Net Present Value helps managers make informed decisions by quantifying the expected financial returns into present-day values, enabling easy comparison between multiple projects.