Net present value is a calculation used to determine the current value of a business, an investment, a capital project, or another finance activity based on the future value of assets. Read to learn ...

The concept of present value is based on the concept of time value. Since money has time value, a rupee today is more valuable than a rupee after one year. In any investment or in any project, the net ...

Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.

When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. The next time you cover this topic, consider teaching students how to calculate ...

A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...

Small business owners frequently make decisions about how to invest money to increase profitability. Part of being a good business manager is the ability to analyze the income potential of long-term ...

An even cash flow of regularly scheduled payments defines an annuity. If you borrow money to start your business, the monthly payments are calculated using an annuity formula. Two basic annuity ...

I am buying a building that has a market cap rate of 5.2 %. Does anybody know what would be the adequate discount rate for net present value calculation. The building is at the beginning of prospect ...

Butters, J. Keith. "Problems Involving Calculation of Internal Rate of Return and Net Present Value--November 1984." Harvard Business School Background Note 285-055, November 1984. (Revised November ...