Net present value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It represents the difference between the present value of cash inflows and outflows over a specific period of time. A positive NPV indicates that the investment is expected to generate more cash inflows than outflows, making it a profitable venture. Conversely, a negative NPV suggests that the investment may not be financially viable. NPV is often used by businesses and investors to make decisions about whether to proceed with a particular project or investment opportunity.