See net present value.
See net present value.
What is NPV? Author: Harold Averkamp, CPA, MBA Definition of NPV NPV is the acronym for net present value, which can be calculated as follows: The present value of the future cash inflows Minus the cash investment...
How do I calculate IRR and NPV? Author: Harold Averkamp, CPA, MBA Definition of IRR The internal rate of return (IRR) method or model determines the interest rate that discounts all cash inflows and cash outflows to a...
What is the difference between Present Value (PV) and Net Present Value (NPV)? Author: Harold Averkamp, CPA, MBA Definition of Present Value (PV) Present value or PV is the result of discounting one or more future...
Evaluating Business Investments Author: Harold Averkamp, CPA, MBA 45 Q&A Popular Recent How do you calculate the payback period? What is financial leverage? What is cost accounting What is capital budgeting? What is...
Present Value of an Ordinary Annuity Author: Harold Averkamp, CPA, MBA 21 Q&A Popular Recent What does per annum mean? What is NPV? What is the effective interest rate? What is the difference between Present Value...
Present Value of a Single Amount Author: Harold Averkamp, CPA, MBA 20 Q&A Popular Recent What is the difference between an implicit cost and an explicit cost? What does per annum mean? What is NPV? What is the...
of the $100,000 cash outflow is $100,000 (since it occurs at the present time). The present value of the $20,000 cash inflows occurring at the end of 7 years is $89,730 ($30,000 X 2.991). Therefore, the combination of...
Featured Review
"I was once told that I didn't need to have all the answers; but, need to know where to go to find the answers. Best piece of advice. AccountingCoach has been my 'go-to' for answers when I've needed it! I appreciate their simple, straightforward explanations. Thank you so much!" - Susan B.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviewsWe now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: