NPVelemzés

NPVelemzés, or Net Present Value analysis, is a financial metric used to estimate the profitability of potential investments. It is a core concept in capital budgeting and investment appraisal. The fundamental principle of NPV is that money today is worth more than the same amount of money in the future due to its earning potential.

The NPV calculation involves discounting all future cash flows, both inflows (revenue) and outflows (costs), back to their present value using a specific discount rate. This discount rate typically represents the investor's required rate of return or the cost of capital. Once all future cash flows are discounted, they are summed up. The initial investment, which is usually an outflow at the beginning of the project, is then subtracted from this sum.

A positive NPV indicates that the projected earnings from the investment, discounted to their present value, exceed the anticipated costs. In theory, projects with a positive NPV should be accepted, as they are expected to increase the wealth of the investors. Conversely, a negative NPV suggests that the project is not expected to be profitable and should be rejected. A zero NPV implies that the project is expected to earn exactly the required rate of return. NPV analysis is widely used because it considers the time value of money and the entire life of a project, providing a comprehensive view of its potential financial viability.