The underlying idea is that a dollar today is worth more to you than a dollar to...

		superprime on April 14, 2014 \| parent \| context \| favorite \| on: Tesla Model S – Cost of Ownership vs. Honda Odysse... The underlying idea is that a dollar today is worth more to you than a dollar tomorrow (all else equal). The NPV is how much a thing is worth/costs now after taking that into account and discounting future cashflows appropriately.