Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows ...

Net present value and the profitability index are helpful tools that allow investors and companies make ... we can simply add the $100 original investment back to the NPV we calculated earlier ...

ROI analysis is often the wrong tool for justifying e-business projects. Adrian Mello tells how other methods can help you get the math right to forge ahead with your e-business initiatives.

NPV is also better for evaluating fund and index investments where there are more contributors to an aggregate value. Likewise, if you don’t have any idea of what the discount rate of an investment ...

The NPV of the $1 million outlay depends on the discount rate, or cost of capital, used to evaluate the investment. The NPV is zero at the IRR, here a fraction of a percentage point above 15%.

A time period for the investment must also be determined. Use a time value of money table or the NPV formula available in most spreadsheet programs to calculate an IT project's NPV.

The IRR is the discount rate that brings regular cash flows back to a net present value (NPV) of zero, meaning it calculates the rate of return at which an investment or project breaks even.

The media pile on the lack of AI ROI. Barely a day goes by where you don’t see some type of negative article about AI ROI, references to Gartner’s trough of disillusionment and the like.

The organization achieved 323% ROI and $2M net present value (NPV) over three years. Netcraft improved visibility and improved takedown time for $1.5M in recaptured productivity over three years.

Alternatively, we can simply add the $100 original investment back to the NPV we calculated earlier ($34.20) to get $134.20. Either way, you get the same value. This figure, $134.20, goes into the ...