Yes
The calculation for present value of a lump sum is used when a business wants to calculate how much money it should pay for an investment today if it will generate a certain lump sum cash flow in the future, given an interest rate and a certain period of time. Calculating present value is also called discounting. 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. The time value of money tells us what the present value of an investment will grow to by a given date. This is its future value. The difference between the present value and the future value depends on how many compounding periods are involved in the investment, and on the interest rate. DEFINITION of 'Time Value of Money-TVM'. The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Future value is the future worth of an amount of money invested today, paying a certain interest rate. If Margie invests $100 today in an account earning 5% per year, then 5% of $100 is $5, and in exactly 1 year, her $100 turns into $105. Time value of money is used to calculate the future value of a sum of money, such as money in a savings account, money market fund, or certificate of deposit. It is used to calculate the present value of both a sum of money or a stream of cash flows. The calculation for future value of a lump sum is used when a business wants to calculate how much money it will have at some point in the future if it makes one deposit with no future deposits or withdrawals, given an interest rate and a certain period of time. What future money is worth today is called its present value (PV) and what it will be worth in the future when it finally arrives is called not surprisingly its future value (FV). The right to receive a payment one year from now for $100 (the future value) might be worth to us today $95 (its present value).
http://bizfinance.about.com/od/smallbusinessfinancefaqs/p/time-value-of-money-overview.htm https://en.wikibooks.org/wiki/Principles_of_Finance/Section_1/Chapter_2/Time_Value_of_Money/PV_and_NPV http://smallbusiness.chron.com/define-time-value-money-876.html http://www.investopedia.com/terms/t/timevalueofmoney.asp http://study.com/academy/lesson/present-and-future-value-calculating-the-time-value-of-money.html http://bizfinance.about.com/od/smallbusinessfinancefaqs/p/time-value-of-money-overview.htm http://bizfinance.about.com/od/smallbusinessfinancefaqs/p/time-value-of-money-overview.htm https://www.business-case-analysis.com/discounted-cash-flow.html
is time value of money a principle of net present value