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Definitions and Terminology
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Z NPVNet Present Value source: ITIL v3, Service Transition, 2007 Net Present Value source: ITIL v3, Service Design, 2007 Net Present Value source: ITIL v3, Service Operation, 2007 Net Present Value source: ITIL v3, Service Strategy, 2007 Net Present Value source: ITIL v3, Continual Service Improvement, 2007 (Net present value) A method used for representing a series of cash inflows and cash outflows over a period of time by a single number, taking into account interest rates and risks. NPV is calculated by applying a discount rate to the series of cash outflows (investments and operational costs) and cash inflows (cost savings and revenues) that are expected to occur during the life cycle of the investment. source: VALIT, ITGI, 2008
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