What is the 'Net Present Value Of Growth Opportunities  NPVGO'
The net present value of growth opportunities (NPVGO) is a calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. The net present value of growth opportunities is used to determine the intrinsic value of a new project or acquisition at a given point in time, based on projected amounts.
NPVGO is calculated by taking the net cash inflow, discounted at the firm's cost of capital, less the purchase price of the additional asset. It is also referred to simply as the present value of growth opportunities (PVGO).
BREAKING DOWN 'Net Present Value Of Growth Opportunities  NPVGO'
By computing the present value of growth opportunities, a company can determine what the new addition or expansion project will add to the value of the existing firm. Even further, an appropriate purchase price can be determined by using the present value model.
By deducting the purchase price from the present value of growth opportunities, you will be left with the net present value of growth opportunities.

Present Value  PV
The current worth of a future sum of money or stream of cash ... 
Net Present Value Rule
A rule stating that an investment should be accepted if its net ... 
Commuted Value
The present value of the future series of cash flows required ... 
Embedded Value
A common valuation measure used outside North America, particularly ... 
Value Investing
The strategy of selecting stocks that trade for less than their ... 
Economic Value Of Equity  EVE
A cash flow calculation that takes the present value of all asset ...

Professionals
Net Present Value (NPV)
FINRA/NASAA Series 66 Section 1  Net Present Value. This section discusses the concept of Net Present Value and its calculation. 
Options & Futures
Understanding Net Present Value
Learn how this value is used to determine the worth of a project. 
Professionals
Present Value And Discounting
It is important to know how to calculate the time value of money so that you can distinguish between the worth of investments that offer you returns at different times. 
Investing
What's a Hurdle Rate?
Hurdle rate has two meanings. In the business world, a business typically makes a decision on a capital project based on the net present value approach. To determine the net present value, the ... 
Forex Education
Time Value Of Money: Determining Your Future Worth
Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation. 
Investing Basics
Understanding The Time Value Of Money
Find out why time really is money by learning to calculate present and future value. 
Fundamental Analysis
Value Investing Strategies in a Volatile Market
Volatile markets are a scary time for uneducated investors, but value investors use volatile periods as an opportunity to buy stocks at a discount. 
Professionals
Time Value Of Money
In addition to being able to understand financial statements, itâ€™s important to be able to estimate the value of an investment in the present and in the future. 
Investing Basics
What Is The Intrinsic Value Of A Stock?
Intrinsic value reduces the subjective perception of a stock's value by analyzing its fundamentals. 
Professionals
Bond Valuation Basics
CFA Level 1  Bond Valuation Basics. Learn the three basic steps behind bond valuation. Covers the fundamental principles of discounting a security's expected cash flows.

How do you use a financial calculator to determine present value?
Learn how to utilize a financial calculator to calculate present value. Understand the necessary data, why it is important ... Read Answer >> 
Why is the time value of money (TVM) an important concept to investors?
Understand why the time value of money is an important concept for investors. Learn when present value and future value calculations ... Read Answer >> 
How do investors calculate the present value of a future investment?
Learn what present value is, how to calculate the present value of a future investment, and what formula investors use to ... Read Answer >> 
How is perpetuity used in determining the intrinsic value of a stock?
Learn about the basics of a perpetuity, its valuation, how it is calculated and how it is used when evaluating the intrinsic ... Read Answer >> 
What is the difference between a company's book value per share and its intrinsic ...
Book value and intrinsic value are two ways to measure the value of a company.In simple terms, book value is based on the ... Read Answer >> 
What is the difference between intrinsic value and current market value?
Discover the differences between intrinsic and market values, what makes the former difficult to determine and how investor ... Read Answer >>