Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Discover how to calculate internal rate of return (IRR) to evaluate investment opportunities and understand their potential ...

Capital budgeting decisions are among the most important decisions a business owner or manager will ever make. Which assets to invest in, which products to develop, which markets to enter, whether to ...

Raiffa, Howard. "Methods of Calculating Net Present Value and Internal Rate of Return, Programmed Exercises." Harvard Business School Supplement 171-261, December 1970. (Revised May 1991.) ...

Present value is a useful mathematical formula designed to figure out if money received now is worth more than money received later. What Is Present Value? Terms Associated With the Present Value of ...

The time value of money sounds like one of those boring economic concepts that a small business owner doesn't have time for – but that would be wrong. Future value and present value are monetary ...

Perhaps the most ubiquitous measure of financial health is net worth, and despite its conceptual simplicity, it is often poorly understood by those lacking a background in finance. Two of the easiest ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...