The difference between net cash flow and net present value is as follows: 1. Essential difference Net cash flow is an indicator in the cash flow statement, which refers to the balance of the inflow (income) of cash and cash equivalents minus the outflow (expense) within a certain period

(Net income or net expenses) reflects the net increase or decrease in cash and cash equivalents of an enterprise during the period.

Net present value refers to the difference between the present value of future capital (cash) inflows (income) and the present value of future capital (cash) outflows (expenses).

Basic indicators of the net present value method in project evaluation.

Future capital inflows and capital outflows are converted into present values ??based on the present value coefficients of the estimated discount rates for each period, and then their net present value is determined.

2. Different calculation methods Net cash flow reflects the results of cash inflows and outflows of an enterprise within a certain period of time.

In terms of amount, it is the difference between cash inflow and cash outflow based on the cash basis.

The basic calculation formula is: net cash flow = cash inflow - cash outflow.

Net present value = total present value of future rewards - present value of initial investment, converting annual operating net cash flow into present value.

If the annual NCF is equal, discount it to the present value according to the annuity method; if the annual NCF is not equal, discount the annual NCF first and then add it up.

Extended information: There are two types of net cash flow: operating and investment.

Operating net cash flow is the cash inflow to an existing enterprise under normal operating conditions.

Description of the outflow activity.

It is generally used for the overall assessment of corporate assets, and some are also used for the overall assessment and individual assessment of intangible assets.

The calculation formula is as follows: operating net cash flow = net profit + depreciation - additional investment.

Investment-type net cash flow is a description of the cash inflows and outflows during the entire life of an enterprise to be built, expanded, or renovated during the construction period, the production period, and the production period.

The calculation formula is: 1. Investment net cash flow = Investment net cash inflow - Investment net cash outflow.

2. Investment-type net cash inflow = sales revenue + residual value recovery of fixed assets + recovery of current assets.

3. Investment-type net cash outflow = fixed asset investment + injected working capital + operating costs + sales tax and surcharges + income tax + special funds.

The most commonly used method of evaluating technology assets is investment net cash flow.

This indicator can be divided into total investment cash flow, own capital cash flow, domestic investment cash flow and foreign investment cash flow according to the source of funds.

In valuation practice, since what is assessed is the profitability of technical assets rather than the attribution of benefits, the net cash flow of all investments is generally used as the expected return.