Definition
Positive net present value: A measure of the profitability of an investment, where the present value of the expected cash flows exceeds the initial investment.
In the room
How the word shows up in a real conversation.
You know Positive net present value is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Investment that generates more value than its initial cost.
Common mistake
Using Positive net present value as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Positive cash flow
Situation where a company's cash inflows exceed its cash outflows.
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Point of sale (POS)
System where customers make payments for goods and services.
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Portfolio
Collection of investments or projects managed by an individual or organization.
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Post-acquisition integration
Process of combining two companies after a merger or acquisition.
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