# NPV (Net Present Value)

*Saving & Investing — Finicade finance glossary*

The value today of a project's future cash flows minus its upfront cost, all discounted for the time value of money. A positive NPV means it creates value; it's the cleanest yes/no test in corporate finance.

**Also known as:** net present value

**Related terms:** [Present Value](https://finicade.com/glossary/present-value), [IRR (Internal Rate of Return)](https://finicade.com/glossary/irr), [WACC](https://finicade.com/glossary/wacc)

**Taught in:** Charter Climb — Capital Budgeting

Source: https://finicade.com/glossary/npv