NPV (net present value)

NPV (net present value) is the sum of future cash flows discounted to today, minus the initial investment. A positive NPV means the project earns more than the required return.

NPV depends on the discount rate, so it is read together with IRR. The highest NPV is not always the best decision; the Enedeal calculator flags this, e.g. for the ESCO model, where the investor puts in no capital.