Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project by comparing the present value of its expected cash inflows with the present value of its initial investment or cash outflows. NPV measures the net benefit or value generated by an investment after accounting for the time value of money and the opportunity cost of capital, taking into consideration the timing and magnitude of cash flows over the investment's life cycle. A positive NPV indicates that the investment is expected to generate value or earn a return greater than the required rate of return or discount rate, making it financially viable and potentially profitable. Conversely, a negative NPV suggests that the investment is unlikely to generate sufficient returns to cover its costs or meet the required rate of return, signaling potential financial losses or value destruction. NPV is calculated by discounting future cash flows at the project's discount rate and subtracting the initial investment or outlay from the present value of the inflows, providing a quantitative measure of the investment's value proposition, risk-adjusted return, and financial feasibility.