Money · RATIOXA GLOSSARY
Net present value (NPV)
Sum of all inflows and outflows discounted to today. Positive NPV means a surplus over the selected discount rate.
Simple definition
Sum of all inflows and outflows discounted to today. Positive NPV means a surplus over the selected discount rate.
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
€1,000 in five years is worth less than €1,000 today at a positive discount rate.