Net Present Value Explained

EPM · Beginner ·📊 Data Analytics & Business Intelligence ·3y ago

About this lesson

In this video, we explain the concept of net present value, a tool that is useful for appraising potential investments. Video contents: - Is This A Good Investment? 00:13 - The Time Value of Money 01:02 - Inflation 01:15 - Opportunity Cost 01:44 - The Discount Rate 02:37 - Present Value 03:54 - Net Present Value Example 04:37 - Net Present Value Formula 06:03 - The Discount Factor 06:49 - Discount Factor Table Example 07:24 - Excel and Google Sheets Shortcut 07:48 - Advantages and Disadvantages 08:13 To learn more, you can read our companion article to this video here: https://hi.switchy.io/AETu Subscribe to Our Channel: http://bit.ly/2k9j9DJ

Original Description

In this video, we explain the concept of net present value, a tool that is useful for appraising potential investments. Video contents: - Is This A Good Investment? 00:13 - The Time Value of Money 01:02 - Inflation 01:15 - Opportunity Cost 01:44 - The Discount Rate 02:37 - Present Value 03:54 - Net Present Value Example 04:37 - Net Present Value Formula 06:03 - The Discount Factor 06:49 - Discount Factor Table Example 07:24 - Excel and Google Sheets Shortcut 07:48 - Advantages and Disadvantages 08:13 To learn more, you can read our companion article to this video here: https://hi.switchy.io/AETu Subscribe to Our Channel: http://bit.ly/2k9j9DJ

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