Money · RATIOXA GLOSSARY
Net present value
Present value of all inflows less present value of all outflows; equivalent to NPV.
Simple definition
Present value of all inflows less present value of all outflows; equivalent to NPV.
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.
Worked example
An NPV of €2,000 means a modelled surplus over the discount rate.