Net Present Value

The value of a stream of future Cash Flows from the viewpoint of today minus the initial investment.

$NPV=-I+\frac{C{F}_1}{1+r}+\frac{C{F}_2}{(1+r{)}^2}+\frac{C{F}_3}{(1+r{)}^3}+...+\frac{C{F}_t}{(1+r{)}^t}$; $NPV>0⟹(-I,C{F}_1,C{F}_2,C{F}_3,...,C{F}_t)$ is a profitable investment $r$ … discount rate