Net Present Value or NPV is the difference between the present value of the after$-$tax net cash inflows of a project and the initial investment that goes in setting up the project.Example:The depreciation for Berlon Inc. $=$ $$400,000/5=$ $$80,000$ per annumThe company$$s after$-$tax operating cash inflows $=$ After$-$tax operating inflows $+$ Depreciation tax shields