Eli5: What is NPV (Net Present Value) in the most simplest terms? I have a non-finance background

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Eli5: What is NPV (Net Present Value) in the most simplest terms? I have a non-finance background

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Risk is the number one thing being evaluated when determining if a financial decision is correct but there are other factors. Money today is worth more to me than money tomorrow. Net present value is how we quantify this concept, we use it to sort cash flows in order of payout, soonest first.

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