Net present value can be defined as:

• The rate of return that causes the present value of all cash flows associated with a project to equal zero.
• The discount rate that causes the current value of cash inflows to exceed the current value of cash outflows.
• A measure of the value created or added today by undertaking a project.
• The cash outflows from a project subtracted from the cash inflows for the project.
• The net costs of a project subtracted from the net income generated from the project.