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Net Present Value
(NPV) (Service Strategy) A technique used to help make decisions about capital expenditure. NPV compares cash inflows with cash outflows. Positive NPV indicates that an investment is worthwhile. See also Internal Rate of Return, Return on Investment.
source: ITIL v3, Service Strategy, 2007
(NPV) 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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