Net Present Value (NPV)

Definition of "Net Present Value (NPV)"

The Smith Realtors real estate agent

Written by

The Smith Realtorselite badge icon

Keller Williams Realty Summit Short Hills

The difference between the present value of cash inflows generated by real estate and the amount of the initial investment. The present value of future cash flows is computed using the cost of capital (minimum desired rate of return, or hurdle rate) as the discount rate.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

CE Shop has become a widely used and popular term in real estate. But what does it mean? “CE” stands for continuing education, and in the real estate business, it implies a ...

Way of selling real estate in which a syndicator sells equity interests to investors. Examples include a real estate investment trust, limited partnership, and corporation. For example, a ...

Written proposals and acceptances applicable to the aspects of the transaction. The escrow agent must follow the purchase and sale agreement. ...

Sheet metal, often made of aluminum, used to cover a structure's open masonry or wood joints. The purpose of flashing is to prevent the penetration of water as well as to provide a drainage ...

Wood strip on the top of a baseboard. ...

We call a concept ostensible when, at first sight, it appears to be accurate or valid. However, upon closer inspection, it proves to be a half-truth or completely false. For instance, Dale ...

Any structure projecting from a wall or other vertical element for the purpose of providing support for a weight or other object. ...

The United States has a law named “eminent domain” that grants local, state, or federal government the right to take ownership of a private property with or without the consent ...

Insurance coverage for any risk that can cause physical damage to the insured item. ...

Popular Real Estate Questions