Spring balances or spring scales measure weight (force) by balancing the force due to gravity against the force on a spring, whereas a balance or pair of scales using a balance beam compares masses by balancing the weight due to the mass of an object against the weight of a known mass or masses.
Net present value (NPV) or net present worth (NPW) is defined as the total present value (PV) of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects.
What is the difference between Present Value (PV) and Net Present Value (NPV)? Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually. Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years.