NPV: Profitability Assessment, Done Right
Net Present Value (NPV) is a key tool for evaluating project profitability. NPV calculates the present value of a series of future cash flows, discounted by time and risk. If the total is positive, the project is financially viable; if negative, it’s not worth pursuing. This chapter breaks down the logic, math, and real-world implications of NPV to help product leaders make smarter capital allocation decisions.