The value added by a project from comparing the difference between the present value of cash inflows and the present value of cash outflows over a period of time. The present value of an outflow or inflow is calculated by using a discount rate to allow for the idea that, for example, £100 in twelve months’ time is not worth as much as £100 now. This is used in the context of assessing the profitability of a project.
We produce Scotland’s official, independent economic and fiscal forecasts