Project viability assessment through Net Present Value (NPV): Difference between revisions

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== Abstract ==
== Abstract ==


The '''net present value (NPV)''' is a financial metric, widely used in project management to determine whether a given project is worth commencing. (source)
The '''net present value (NPV)''' is a financial metric, widely used in project management to determine whether a given project is worth commencing (source). For a given project to be considered a profitable investment, a minimum requirement is that NPV > 0. (source) NPV is calculated by aggregating the streams of costs and benefits over a given time period associated with a project into a single value.
 
 
The '''net present value (NPV)''' is an economic index value, where streams of costs and benefits of a given project are aggregated into a single value that reflects the project's profitability.  
 
 
 
s an economic index value widely used in project management to determine whether

Revision as of 17:07, 12 February 2023

Abstract

The net present value (NPV) is a financial metric, widely used in project management to determine whether a given project is worth commencing (source). For a given project to be considered a profitable investment, a minimum requirement is that NPV > 0. (source) NPV is calculated by aggregating the streams of costs and benefits over a given time period associated with a project into a single value.