Net present value

{
  "id": "MLC-T-INS-002301",
  "term": "Net present value",
  "field": "Insurance and risk management",
  "definition": "A financial metric used to evaluate the profitability of an investment or project by discounting all future cash inflows and outflows to their present value and then summing them. A positive net present value indicates that the projected earnings exceed the anticipated costs, making the investment potentially worthwhile. This concept is applied in insurance for evaluating long-term projects, product development, and capital allocation decisions.",
  "url": "https://mlchart.com/terminology/insurance/net-present-value/"
}