Net Present Value describes what the value of a future cash-stream is comparably worth today using a given discount rate (we call that the Net Rate of Return or Net Expected Return).

Target-Maps use present values to compare the value of *what you want* for the future in today's dollars (lump sum), with the value of *what you have* now and what is expected to come in the future in today's dollars (lump sum). The discount rate (net rate of return) that Target-Map uses is the value you've placed in the *Expected Net Return on Capital *field.

Target-Maps are based on business funding logic:

- How funded am I for a project? Shown as % score and progress bar.
- What are my expectations of return (cost of capital)? Net expected return.
- What do I want (now or in the future)? Capital cost today.
- What do I have already earmarked for this project? Capital available today.
- How should I fund this project? New capital now or cash-flow over time.

#### Click below to access outside resources to help understand how Net Present Value works.

**Investopedia -****Present Value****( 2 minute video)****Forbes -****Present Value of Social Security****The Balance -****Net Present Value for Retirement Planning****Kitces -****Social Security as a Lump Sum****Investopedia -****The Time Value of Money****(90 seconds)**

1/2019