Money · RATIOXA GLOSSARY

Net present value

Present value of all inflows less present value of all outflows; equivalent to NPV.

01

Simple definition

Present value of all inflows less present value of all outflows; equivalent to NPV.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

An NPV of €2,000 means a modelled surplus over the discount rate.