chapter  1
Net Present Value: Just the Tip of the Iceberg
ByJoyce I. Warnacut
Pages 4

The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. The value today, of cash or cash flows to be received in the future, is called net present value, abbreviated as NPV.