Reviewed by Andy Smith Fact checked by Yarilet Perez Net present value (NPV) assesses the profitability of an investment on ...

Although these restrictions sound severe, the Bernoulli equation is very useful, partly because it is very simple to use and partly because it can give great insight into the balance between pressure, ...

But that doesn't mean that an investor assumes the NPV is actually zero, this is just how the mathematical formula works. Instead, think of it this way: NPV tells you the dollar value of a ...