Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

ROI is an important measure of an investment's performance but it has some drawbacks. Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a ...