Economics
Net Present Value (NPV)
Quick fact
A positive NPV means an investment is expected to generate more value than its cost, after accounting for the time value of money—making it the gold standard for investment decisions.
Why this is interesting
Would you rather have $100 today or $110 a year from now? The answer isn't obvious—it depends on what that $100 could earn in the meantime. This puzzle lies at the heart of Net Present Value.