Net present value or NPV measures the current value of a project expected incremental cash flows, adjusted for a specified rate of return. In other words, NPV takes into account the time value of money and calculates the net present value of the cash flows a project will generate over a specified time period.

We can use NPV to compare potential abatement projects in today’s dollars. In general, a positive NPV indicates that the project is expected to is expected to generate cost savings.