Source: Ludwig von Mises Institute
by Soham Patil
“Net Present Value (NPV) is a popular decision-making criteria used by firms to make key, crucial choices about how to allocate resources across an economy. Net Present Value forecasts temporally discount future cash flows to their present value to check whether a project creates value. If a project has an NPV greater than zero, it creates value. On the other hand, if a project has an NPV less than zero, the project loses value. NPV forecasting isn’t perfect and there are often assumptions baked into any forecast but there is one particular type of error that occurs most often and has disastrous consequences.” (01/13/26)
https://mises.org/power-market/cheap-credit-doesnt-create-economic-growth-it-makes-us-poorer