What is NVP and why is it important?

"NPV is a financial metric that stands for Net Present Value. It takes into consideration the time value of money, translating future cash flows into today's dollars. As a financial analyst, I frequently calculate ROIs for potential projects and expenditures; NPV is a method that calculates the ROI by looking at the money you expect to make and converting those returns into today's dollars so you can tell whether the project or investment is worthwhile. NPV is important because it takes into account the fact that the buying power of today's money is greater than the same amount of money in the future, thereby allowing a financial analyst to determine the total value of a potential investment opportunity."