NPV vs IRR conflict is discussed in Hindi. NPV and IRR calculation explained with example i.e. when net present value and internal rate of return give different results while evaluating projects or investments. Related Videos: Net Present Value (NPV) - https://youtu.be/SpHIBfPGwx8 Internal Rate of Return (IRR) - https://youtu.be/x6eXfx2Tv-w Time Value of Money - https://youtu.be/Pazp1b2LhAQ इस वीडियो में एनपीवी वर्सेज़ आईआरआर कनफ्लिक्ट पर चर्चा की गई है। एनपीवी और आईआरआर कॅल्क्युलेशन उदाहरण के साथ समझाया गया है यानी जब नेट प्रेजेंट वैल्यू और इंटरनल रेट ऑफ़ रिटर्न प्रोजेक्ट्स या इंवेस्टमेंट्स का मूल्यांकन करते समय अलग-अलग परिणाम देती है। Share this Video: https://youtu.be/kUV9xE2B7KU Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: Which one is better - NPV vs IRR? Which one is a better option for projects and investment calculation between NPV and IRR? What to do when NPV and IRR give different results while evaluating projects or investments? What is the difference between net present value and internal rate of return? When should you opt for IRR and when for NPV for investment return calculation? How NPV is different from IRR? How to do NPV and IRR comparison for any project and investment? Which is a better calculation method for investment matric NPV and IRR? How to calculate net present value and internal rate of return in excel? What is the calculation formula for NPV and IRR? Why NPV is better calculation method for calculating investment returns? What makes IRR a better option for investment return calculation method? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Facebook – https://www.facebook.com/assetyogi Twitter - http://twitter.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Hope you liked this video in Hindi on “Net Present Value vs Internal Rate of Return (NPV vs IRR)”.
Views: 20855 Asset Yogi
Project management topic on Capital budgeting techniques - NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period, Profitability Index or Benefit Cost Ratio.
Views: 453280 pmtycoon
This video compares and contrasts NPV and IRR, noting several situations in which IRR cannot be used. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 230227 Edspira
The Finance Guru is back with yet another informative video that will solve all your queries about things that should be keep in mind.Today's topic of discussion 'Difference between NPV and IRR'. For More Updates follow me on: Facebook Link...https://www.facebook.com/tovishalthakkar Twitter Link...https://twitter.com/authorvishalt?lang=en Linked in Link. in.linkedin.com/in/vishalthakkar1405/ To know more about my channel, SUBSCRIBE now http://www.youtube.com/user/financetubebyvishalt?sub_confirmation=1
Views: 28492 Finance Tube
Explained various capital budgeting techniques with the help of one single question which are : 1. Pay Back Method 2. Average Rate of Return Method 3. Net Present Value Method 4. Profitability Index Method 5. Internal Rate of Return Method Student can also watch the following lectures related with the Financial Management : 1. Capital Budgeting (Introduction) - Financial Management : https://www.youtube.com/watch?v=ZOaGNDmKpzo 2. How to calculate PVF, PVAF, CVF, CVAF values on calculator : https://www.youtube.com/watch?v=cUTDq6hpais 3. Present Value of Perpetuity : https://www.youtube.com/watch?v=gVxvJ_JTiug 4. Time Value of Money (Introduction) - Financial Management : https://www.youtube.com/watch?v=oeox8DLagHU 5. Cost of Capital (Cost of Debt, Preference Shares, Equity and Retained Earnings) - Financial Management : https://www.youtube.com/watch?v=VGN_IonxroE 6. Cash Budget (Introduction) : https://www.youtube.com/watch?v=s1Yx5bFOZfo 🔴 Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal 🔴 Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing 🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal #CapitalBudgeting #FinancialManagement
Views: 330470 CA. Naresh Aggarwal
HI Guys, This video will teach you how to calculate NPV (Net Present Value) and Internal Rate of Return (IRR) in Excel. Please go to our website www.i-hate-math.com for more tutorials. http://www.i-hate-math.com Thanks for learning !
Views: 328742 I Hate Math Group, Inc
http://alphabench.com/data/excel-npv-irr-tutorial.html Tutorial demonstrating how to calculate NPV, IRR, and ROI for an investment. Demonstrates manual calculation of present values as well as the use of NPV and IRR functions in Excel. The spreadsheet used can be downloaded at: http://alphabench.com/data/NPV-IRR_STR.xlsx Capital Budgeting includes the analysis of various projects with financial measurements such as Net Present Value (NPV), Internal Rate of Return (IRR) and Return on Investment (ROI). This video discusses all of these concepts briefly while demonstrating the calculation of them using Excel. Excel Functions: NPV IRR
Views: 51721 Matt Macarty
Net Present Value or NPV concept & calculation method in Excel explained in Hindi. NPV is an important valuation metric to evaluate a project, business, franchise or an investment opportunity. It is also used in Discounted Cash Flow method to value a company. It is used along with IRR (Internal Rate of Return) to evaluate an investment. Net Present Value is based on the concept of Time Value of Money where we calculate the present value of future cash flows (future value). Related Videos: Internal Rate of Return (IRR) - https://youtu.be/x6eXfx2Tv-w Time Value of Money - https://youtu.be/Pazp1b2LhAQ Present Value - https://youtu.be/pxm-5MBO2dg Present Value of an Annuity - https://youtu.be/0giLqLyijtc एक्सेल में नेट प्रेजेंट वैल्यू या एनपीवी का कांसेप्ट और कैलकुलेशन मेथड इस वीडियो में हिंदी में समझिये। एनपीवी किसी प्रोजेक्ट, बुज़ीनेस, फ्रेंचाइज़ी या इन्वेस्टमेंट ओपोर्च्युनिटी की वैल्यूएशन करने के लिए एक महत्वपूर्ण वैल्यूएशन मीट्रिक है। इसे किसी कंपनी की वैल्यूएशन के लिए डिस्काउंटेड कैश फ्लो मेथड में भी उपयोग किया जाता है। किसी इन्वेस्टमेंट का वैल्यूएशन करने के लिए इसका उपयोग आईआरआर (Internal Rate of Return) के साथ किया जाता है। नेट प्रेजेंट वैल्यू टाइम वैल्यू ऑफ़ मनी के कांसेप्ट पर आधारित है जहां हम फ्यूचर कॅश फ्लो (फ्यूचर वैल्यू) के प्रेजेंट वैल्यू की गणना करते हैं। Share this Video: https://youtu.be/SpHIBfPGwx8 Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is net present value? What is the purpose of net present value? Why net present value calculation is used? How to calculate net present value? What is the calculation formula for net present value? What is the method of NPV calculation? How to evaluate a project, business, franchise or an investment opportunity with net present value method? What is discounted cash flow method? What is DCF and IRR (Internal Rate of Return) and how they are used? What is terminal cash flow? How net present value is calculated for a project, business or franchise? How net present valuation method is used to evaluate an investment opportunity? What is discount rate? How to evaluate the value of a company? What is the valuation method for projects, business, company, franchise and investment opportunity? How to calculate net present value in a Microsoft Excel sheet or Google spreadsheet? How to evaluate the net present value of any investment? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Twitter - http://twitter.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Facebook – https://www.facebook.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Net Present Value (NPV)”.
Views: 57528 Asset Yogi
Description: How to calculate net present value (NPV) and internal rate of return (IRR) in excel with a simple example. Download the excel file here: https://codible.myshopify.com/products/npv-and-irr-in-excel-2010-excel-files Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Views: 880697 Codible
A choice between money now and money later. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/present-value-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to "present value". So pay attention to this tutorial. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 769853 Khan Academy
This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 538109 Edspira
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 648919 Edspira
The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 9: Net Present Value and Other Investment Criteria Net Present Value (NPV) Payback Period Discounted Payback Period Average Accounting Return (AAR) Internal Rate of Return (IRR) Accepting or Rejecting a Project More Information at: http://thefincoach.com/
Views: 3373 TheFinCoach
Get your free trial of our CFA® Exam Review Course at http://ow.ly/PheMi This brief video lesson features Basit Shajani, CFA, detailing how to calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) of an investment. It also covers the differences between the NPV and IRR rules as well as highlights problems with the IRR rule you need to know.
Views: 4564 Wiley Finance
Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Net Present Value, commonly referred to as NPV, is a capital budgeting tool used in corporate finance and is designed to help firms assess the financial feasibility of various capital expenditures. Based largely on the time value of money, NPV compares the value of the initial investment to the cash flow generated over a number of years. An NPV greater than 0 supports the acceptance of the project, while an NPV less than 0 supports the rejection of the project. Over the course of this video we'll walk through how to calculate NPV using the present value formula. Although the process is rather simple once you understand the basics, calculating NPV can be rather time consuming. To ensure accuracy make sure that you are organized when writing out your calculations as one number can certainly affect your results.
Views: 199052 Alanis Business Academy
Get our latest video feeds directly in your browser - add our Live bookmark feeds - http://goo.gl/SXUApX For Chorme users download Foxish live RSS to use the Live Feed - http://goo.gl/fd8MPl Academy of Financial Training's Tutorials on Level 1 2014 CFA® Program -- Corporate Finance Here we understand the concepts of Net Present Value (NPV) and Internal Rate of Return (IRR). There are some of the methods for evaluating projects for Capital Budgeting Decision making process. Full Course Available on http://goo.gl/XCUK4Q SUBSCRIBE for Updates on our Upcoming Training Videos Visit us: http://www.ftacademy.in/ About Us: Academy of Financial Training is training services company that specializes in providing a complete range of finance training services and solutions Since its incorporation AFT has trained more than 5,000 attendees in various finance domains, and is serving marquee Fortune 500 clients, making it one of the largest corporate training companies in India AFT's training modules include programs right from basic financial statements analysis to advanced financial modelling, corporate finance, risk management and capital markets, etc related trainings. CFA Institute (Organization), Chartered Financial Analyst (Profession), CFA Level 1, Alternative Investments, Finance, MBA, FRM, Financial Risk Management, B.Com, M.Com, Commerce
Views: 50970 Academy of Financial Training
In this video I go over through some basics in economics and financing and discuss the Internal Rate of Return (IRR) as well as derive the formula for the Net Present Value (NPV). In financial budgeting and investment analysis, to compare different projects or investments the interest rate at which all current and future cash flows break even in terms of their present values is called the internal rate of return (IRR) and is simply an interest or discount rate. The Present Value (PV) is the value of any future cash flows but set to the date of valuation. The value of money increases with time so $1 today is worth more than $1 tomorrow due to the ability to gain value through interest. The NPV is simply the sum of all the PVs and when equal to 0, the corresponding interest rate is the IRR. In this video I go over an example in which I derive the NPV formula and solve for the IRR using an Microsoft Excel spreadsheet to manipulate the IRR until the NPV = 0. This is a very useful introductory video to financing and investing so make sure to watch it! Download the notes in my video: PDF Notes: https://1drv.ms/b/s!As32ynv0LoaIhddf6KOQLiv9qVe6rA Excel Notes: https://1drv.ms/x/s!As32ynv0LoaIhddOstzID9RthXuu8Q Related Videos: Marginal Costs - Economics 101: http://youtu.be/XS-1L6Iq4Wk Marginal Cost vs Average Cost - Economics 101: http://youtu.be/HiMaLvsTstc Marginal Cost vs Average Cost Example - Economics 101: http://youtu.be/W2xx0Wtl608 Marginal Cost vs Marginal Revenue: When is maximum profit realized??: http://youtu.be/ufMgmYbZPdU Marginal Cost vs Marginal Revenue - Examples Part 1: Maximizing Profit: http://youtu.be/cQ83F5qynco Marginal Cost vs Marginal Revenue - Examples Part 2: Maximizing Revenue : http://youtu.be/nrH_Jrpm7vU . ------------------------------------------------------ SUBSCRIBE via EMAIL: https://mes.fm/subscribe DONATE! ʕ •ᴥ•ʔ https://mes.fm/donate Like, Subscribe, Favorite, and Comment Below! Follow us on: Official Website: https://MES.fm Steemit: https://steemit.com/@mes Gab: https://gab.ai/matheasysolutions Minds: https://minds.com/matheasysolutions Twitter: https://twitter.com/MathEasySolns Facebook: https://fb.com/MathEasySolutions Google Plus: https://mes.fm/gplus LinkedIn: https://mes.fm/linkedin Pinterest: https://pinterest.com/MathEasySolns Instagram: https://instagram.com/MathEasySolutions Email me: [email protected] Try our Free Calculators: https://mes.fm/calculators BMI Calculator: https://bmicalculator.mes.fm Grade Calculator: https://gradecalculator.mes.fm Mortgage Calculator: https://mortgagecalculator.mes.fm Percentage Calculator: https://percentagecalculator.mes.fm Try our Free Online Tools: https://mes.fm/tools iPhone and Android Apps: https://mes.fm/mobile-apps
Views: 9739 Math Easy Solutions
Net Present Value and Internal Rate of Return http://www.garguniversity.com Check out Ebook "Mind Math" from Dr. Garg https://www.amazon.com/MIND-MATH-Learn-Math-Fun-ebook/dp/B017QEIF18
Views: 51797 Garg University
Omg I'm SHOCKED how easy.. http://www.MBAbullshit.com or https://www.youtube.com/MBAbullshitDotCom (Slower original video here = https://www.youtube.com/watch?v=GJMad7KTpaw) Hi guys! Here's a super dooper easy video on Net Present Value. You will be shocked, guarantee it. Alright, so if I speak too fast, you can watch my original slower video. Just open this same video on You Tube and click the link in the description in You Tube. Alright, so I'd like to start with the word Net. What do we mean by Net? Well it's usually the result of different amounts combined. So for example if you're at a restaurant. And you order food for $100. That's expensive. And the discount is $15. So you'd be paying $85 Net. The word Net means it's simply a combination of the $100 and the negative $15 combined. So this becomes net. So how do we apply that in business? Well let's say that you paid $100 today to your friend and your friend would give you back $105 one year later. So this is negative. That's why it's red and this is positive that's why it's green. It's negative because you're paying it. This is positive because you're getting it. Alright, so in this case we can say that we have a Net Value of positive $5. Why? Because positive 105, negative 100, we get $5. So does this look like a good deal to you or not? I think it does look like a good deal. Think about it. You're getting 100 bucks, you're getting back the 105. You gain 5. It seems like a good deal, doesn't it? However in this case we're only talking about the net value. It's much better to think about the net present value. So present means today. So we have to think about the value of this $105 today, because $105 next year is not worth $105 today. Why? Because we have to think about the time value of money. What does the time value of money mean? It means that money given to you today is worth more than money given to you tomorrow. And it’s worth much more than money given to you next year. Why? Because,for example, if a bank was giving a 6% interest rate… I know that's high, just an example… Then instead of giving your money, your $100 to your friend and getting back $105 next year, you could instead decide to deposit your $100 into the bank. Next year how much would that be? Would it be $105, would it be $100? No it would probably be $100 plus 6%. It would probably be $106. So that's what we mean by the time value of money. So with the net present value formula, which is different from simply net value. The net present value formula, we take into consideration the time value of money and we take into consideration how much interest you would have earned, if you put your money in the bank instead of giving your money to your friend or depositing your money in your business or whatever or investing your money in your business or whatever options you have. Okay, so now how do we create the net present value formula? Very simple. In this case step one is, boom, what is this? Why is this 105, and this one is 105 plus all this scary mumbo jumbo? Don't worry it's not scary at all. The 105 here represents the $105. The .06 here represents the 6% interest rate that you would have earned if you put your money in the bank instead of depositing it with your friend and getting back money from your friend. Subscribe to MBAbullshit.com and my other finance videos at http://www.youtube.com/subscription_center?add_user=mbabullshitdotcom Net Present Value Explained with NPV Calculation & Net Present Value Example
Views: 65127 MBAbullshitDotCom
Calculates the net present value (NPV) for a project using cash flow and time value of money as well as the investor's rate of return (IRR). Made by faculty at the University of Colorado Boulder Department of Chemical and Biological Engineering. Check out our Process Design playlist at http://www.youtube.com/playlist?list=PL4xAk5aclnUjEuE_fvbyEts_oBpHYcwLY
Views: 5352 LearnChemE
Due to differences in the scale, timing, and riskiness of projects, we cannot simply compare the IRRs (incremental rates of return) of two projects. However, we can compute the incremental cash flows of choosing one project versus the other and compute an incremental IRR for these cash flows. This incremental IRR can then be compared to the discount rate to determine which project is more profitable. That being said, the incremental IRR is problematic when some of the negative cash flows do not precede the positive cash flows. Furthermore, the incremental IRR tells us which project is more profitable but it does not tell us whether each of the projects has a positive NPV on a stand-alone basis. And, if the projects have different costs of capital, then we have the additional problem of not knowing the cost of capital to which we should be comparing the incremental IRR. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 62716 Edspira
Ken Boyd is the owner of St. Louis Test Preparation (www.stltest.net). He provides tutoring, podcasts, blogs, articles and speaking services on accounting and finance. Ken is the author of Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies (Available 2015). As a former CPA, Auditor, Tax Preparer and College Professor, Boyd brings a wealth of business experience to education.
Views: 520 AccountingED
This video shows how to use the BA II Plus Financial calculator to compute NPV and IRR
Views: 203652 Joshua Emmanuel
The basics of how to calculate present value and net present value are explained in this short revision video.
Views: 67005 tutor2u
Business and Financial Mathematics Tutorials- http://goo.gl/KGkCDW My Casio Scientific Calculator Tutorials- http://goo.gl/uiTDQS I'm Sujoy and today you'll learn how to calculate Net Present Value (NPV) and Internal Rate of Return (IRR) on Casio fx-991ES Scientific Calculator for uneven cash flows. Topics Explained- 1. NPV and IRR word problem 2. Expected Rate of Return and Initial Investment 3. Net Present Value formula 4. Implementing NPV formula on Casio fx-991ES Scientific Calculator 5. Judging credibility of investment based on NPV 6. Internal Rate of Return formula 7. Implementing IRR formula on Casio fx-991ES Scientific Calculator 8. CALC and SOLVE features of Casio fx-991ES Scientific Calculator That's it for now! How is the video? Let me know. I've uploaded videos on - 1) Statistics, 2) Numerical Methods, 3) Calculator Tricks for Exams 4) Business & Financial Mathematics, 5) Operations Research(OR), 6) Computer Science & Engineering(CSE), 7) Electrical Engineering, 8) Life Hacks! 9) CCNA Networking, 10) Android Application Reviews, 11) India Travel & Tourism, 12) Street Foods, and many other topics. Plz visit my channel to watch them. Thanks! Join me at my YouTube Channel- http://www.youtube.com/sujoyn70 Join me at my Blog- http://www.sujoyn70.blogspot.com
Views: 41284 Sujoy Krishna Das
net present value, NPV, internal rate of return, IRR, payback period, cost of capital, cpital budgeting, simple rate of return, Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity,
Views: 5942 Farhat's Accounting Lectures
NPV, IRR, and MIRR are discussed within Excel.
Views: 31720 Finance and Excel Videos
For an experienced SF Bay Area real estate agent visit http://iLiveInTheBayArea.com Like me on Facebook: http://fb.com/iLiveInTheBayArea Thumbs up, favorite, share, subscribe and make a comment! Welcome to part two of my investing terms video. We're going to continue off of the same scenario we were speaking of in my "Investing Terms Part 1" video, which discussed NOI, Cap Rate and Cash on Cash. As a refresher of what the details were in regards to the property, we were looking at a $2m income property that made $150k NOI. We figured the cap rate was 7.5%, and that if we used leverage our cash on cash return jumped up to 8.775%. Now, we're going to get into the two more complex formulas. The first one we're going to go over is called Internal Rate of Return, or IRR. The second is called Net present value, or NPV. Both of these can correlate with each other quite often, but let's take them on one by one. First, the IRR concept. IRR basically is looking at the investment OVERALL, from START to FINISH -- and the key word there is FINISH because there must be an exit strategy -- and determining how what percentage you made. So let's take a look at our property. $2M to buy it cash, $150k for 3 years, and then at the end of the 3rd year a huge bonus of $4M. Using IRR we've made 32.10%. As I explained our money has made 32.10% every year from start to finish...again, the key word there is finish. Which brings us finally to the Net Present Value, or NPV. Net Present Value means to convert all the future cash flows into today's dollars. Which even for me is still a bit of a confusing way to understand it. Let's go back to the bank we just left. Here you are sitting at a table with a good investor friend of yours. You tell your friend all the details of what just happened the last 3 years. How you gave the bank $2M and they gave you back $150k every year for 3 years...then how after 3 years you went to go take your $2M out and instead they gave you $4M. You're good investor friend explains everything about the Internal Rate of Return and basically how much money you just made year after year. While you guys are talking, he or she asks you...how much were you okay with making??? Kind of an odd question, but a valid one. As an investor, you have to know how much you are comfortable with making. This is discussed more in my "Determining Net Present Value" video. For the sake of argument, let's say you tell your friend you were more than comfortable making 20%, and that over 32% was great, but MUCH higher than you expected. What you can now do is determine the Net Present Value. In other words, if you could go back in time and see what you would make per year and when you took your money out, how much *COULD* you have paid in the BEGINNING and still have made that 20%? Well, let's look at our property in the same fashion. Making $150k/year and you make $4M at the end of 3 years, how much more could you have paid to still make a 20% IRR? After plugging in a few numbers, the amount it $630,787. In other words, if you pay the original $2M, PLUS the additional $630,787, you're new IRR will be 20%...right at the percentage you were comfortable with... Now at this point you may be asking why you would need this information?? Let's say you are looking at a property and there are a lot of interested buyers and of course multiple offers. Obviously there can only be one buyer. By knowing your desired NPV and plugging it in your formula you can see how high would be your maximum to where you would still make your desired return. This works in the opposite manner. If you're looking at this same property and your NPV target was 35%, you would be finding out how much LESS you had to pay for the property. Remember that if you're looking for a quick judgment snapshot, think of IRV for your cap rate formula. If you're looking to hold a property for a while and what to figure out what your making after all expenses -- even if you have a loan, use your cash on cash formula. If want to know the true value of your investment from start to finish, think internal rate of return. And if you're trying to find out the difference of what you need to accomplish to hit that target IRR, think of the Net Present Value. Of course, there's a few more formulas out there in the investment world, but when it comes to income property, these will definitely give you a leg up in determining what your investment is really worth...now that's good to know. Contact Davide Pio Today | SF Bay Area Real Estate http://iLiveInTheBayArea.com | 510-815-2000
Views: 34895 Davide Pio - CCIM, LEED AP
Compare net present value (NPV) versus internal rate of return (IRR), how they are related when comparing project investments with discounted cash flows (DCF), example starts with calculating the NPV and IRR (using interest rate cost of capital) for discounting a series of cash inflows and cash outflows back to the start date of the project, (1) shows detailed calculation for discounting the cash flows using Excel functions XNPV (net present value function) and XIRR (internal rate of return function), internal rate of return (IRR) is expressed as a interest rate percent return while net present value (NPV) expressed in dollar value, (2) examples showing the effect interest rates have on NPV (higher interest rate the lower NPV, lower the interest rate higher NPV), and (3) relationship between NPV and IRR shown by comparing different interest rates with NPV, detailed calculations based on cash flow diagrams, how to use Excel functions to calculate NPV and IRR, and how to evaluate, compare the calculated discounted cash flows typically used in accounting problems by Allen Mursau
Views: 17219 Allen Mursau
CIMA P2 Discounted Investment Appraisal Techniques - Net present Value, IRR Free lectures for the CIMA P2 Advanced Management Accounting Exams
Views: 4192 OpenTuition
In this presentation we have introduced some of the techniques used while performing project selection, we have seen people getting questions related to PV, NPV, IRR, BCR and Payback period in their PMP exam. Project Selection falls under Project Integration Management Knowledge Area and it gets executed before Project Charter gets prepared. Subscribe to our YouTube channel and get email alerts of latest video upload. Enjoy Watching Video! This video is based on PMBOK® Guide Fifth Edition. We have complete PMBOK® Guide Sixth Edition program, for more details please visit: https://www.izenbridge.com/pmp/online-course/ For any PMP® exam-related concept discussion, you can participate in iZenBridge forum: forum.iZenBridge.com
Views: 39242 iZenBridge Consultancy Pvt Ltd
This video discusses why the NPV (net present value) decision rule is superior to the payback method when deciding whether to accept a project. An illustrated example is provided to demonstrate how the payback rule is inferior because it: (1) does not take into consideration the time value of money, (2) ignores cash flows occurring after the payback period, and (3) relies on an arbitrary required period of time in which the investment should be paid back. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 22114 Edspira
Stay knowledgeable by subscribing! http://bit.ly/iLiveInTheBayArea Visit my site for even more information: http://www.iLiveInTheBayArea.com Like me on Facebook: http://www.fb.com/iLiveInTheBayArea As I discussed in my "Investing Terms Part 2" video, Net Present Value -- or NPV -- means to convert all the future cash flows into today's dollars. Which even for me is still a bit of a confusing way to understand it. For a quick recap on how we calculate this figure, let's look at a simple example. If you buy a property for $1m, and make $100k/year every year for 5 years, then SELL the property for $1m again at the end of the 5th year, your internal rate of return will be 10%. To explain this simply, you've made 10% on your money every year for the last 5 years since you bought and sold the property with no profit. But what is your Net Present Value? Well, you're NPV can only be determined by you as an investor. As an investor, you need to have an idea of what kind of return you are ok with making. For example, if you place your money in a savings account, you know that tomorrow, next year and even in 10 years your money is going to be there. Even if the bank closes, so long as you have under $250,000 in your account the federal government will guarantee that your money is safe. Because of the safety factor the bank in return pays you a very, very small return rate. Usually half or a quarter of a percent. Because of the lack of risk and the extreme safety of your money, you're NPV is under 1%. Safety is your goal. If you willing to go into a decaying market where unemployment is extremely high and the populating is shrinking, you may be demanding a higher NPV. If you're looking into investing in a strong market where there is low unemployment and the population is growing, you may demand a lower NPV. Let's look at a real life example in my market area. San Francisco is currently -- and almost always -- considered one of the top investment locations in the US along with New York, LA and other large metro areas. Because many people view it as a stable investment, they're willing to accept less of a return, typically in the 3-6% range. Right outside of San Francisco are some pretty stable locations which aren't considered as great as San Francisco but are fairly close to investment value. In locations such as Berkeley and Downtown Oakland your average return range may be 5-9%. Once you start venturing out further and further away from the main business hub the rates start to increase depending on a variety of factors. For example, if you take a location with a higher than normal crime rate and higher unemployment you will likely see return rates of over 15%. However, if you take another location that is the same distance from San Francisco but is a high income area with low unemployment you will likely see return rates in the range of 8-12%. If you go to a city where there is only one major employer who is about to go bankrupt and could very likely close their factory doors, then return rates would be much much higher than 15% due to the extreme risk. Which again brings us to the point of you as an investor knowing what your desired return rate is. Let's go back to the same $1m property example. Let's say you are interested in the particular property, but because you think some tenants might leave you don't want to make 10%, you instead demand 12%. Using the same $1M property example above, if you plan on selling this property in 5 years for the same $1m you purchased it for, you would have to pay $72,000 LESS than $1m to attain your 12% Internal rate of return. But presume there's a bidding war, and you feel this property is under priced just to draw in your offer. Instead of 10%, you're perfectly comfortable with 8%. Again you using our example you could pay about $80,000 MORE than the $1m list price and still make your 8% return rate. Determining your NPV isn't the easiest thing in the world. Nor is it the easiest concept to understand. However, don't confuse the fact that it is a bit tricky to understand with the fact that it is one of the most sought after methods by investors in determining what a property is worth to them...now that's good to know.
Views: 16481 Davide Pio - CCIM, LEED AP
http://www.business-analysis-made-easy.com/NPV-Calculator.html http://www.business-analysis-made-easy.com/Calculating-Internal-Rate-Of-Return.html http://whatisroi.org/ Hello, my name is Dee Reavis. I want to talk to you today about NPV or Net Present Value, IRR or Internal Rate of Return and ROI or Return on Investment. I am not going to get into detail about each of them in this video. The question I really want to address here is why would you want to use any of these tools. The answer is that you would be able to get answers to the following types of financial questions: 1. Lease or Buy -- Is it better to purchase a car or to lease a car. 2. Whether Investment Opportunities are Worthwhile -- This means that you will avoid bad investments. 3. Lump Sum vs. Annuity -- Suppose that you could chose between getting a lump sum payment now or getting monthly income for twenty years. Which alternative is to your financial advantage? 4. Best Investment Alternative -- What if you have several investment alternatives. You can't invest in them all, so you need to decide which one is the most profitable to you. The goal is to maximize your investment return. 5. Will an Investment Yield a Minimum Rate of Return -- When you set your discount rate, you are declaring what your minimum acceptable rate of return is. You will know whether your proposed investment has a return greater than your minimum. 6. What is the Expected Investment Return -- Using IRR, you can know what your expected investment return is. With this knowledge, you can look at other investments that tout their return and know if there is any reason to pursue them farther. That is the power of these financial tools. Simple Calculations yield a single number for NPV, IRR or ROI that can answer each of the above questions. The only assumption that you have to make is the discount or hurdle rate. The discount rate defines what your minimum acceptable rate of return is. Each of these techniques have advantages and disadvantages. I will explore the good and the bad in future videos. I will also explore how to use them to answer the above questions. Be sure to watch the other videos in this channel to get a better understanding of these smart money techniques. http://youtu.be/VoaCCsOHxco
Views: 13340 Dee Reavis
Internal rate of return (IRR) and Net present value (NPV) in excel without using commands http://www.garguniversity.com Check out Ebook "Mind Math" from Dr. Garg https://www.amazon.com/MIND-MATH-Learn-Math-Fun-ebook/dp/B017QEIF18
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This video is part of a series of lectures that comprise an MBA level course in Corporate Finance. The lectures build on concepts and principals developed in previous lectures and, therefore, are best viewed in sequence. However, each lecture is divided into topics which can provide students (MBA and advanced undergraduates) with a helpful review of a specific topic. Persons preparing to take the CFA Exams will also find these lectures useful. The course consists of the following video lectures: 1. Investment Decisions and the Fundamentals of Value. 2. Financial Statements and Cash Flow (5 parts) 3. Discounted Cash Flow Valuation (6 parts) 4. Investment Decision Rules (5 parts) 5. Making Capital Investment Decisions (2 parts) 6. Valuation of Bonds (4 parts) 7. Stock Valuation (3 parts) 8. Lessons from Capital Market History (3 parts) 9. Risk and Return (3 parts) 10. CAPM (3 parts) 11. Risk and Capital Budgeting (3 parts) 12. Capital Budgeting Analysis (3 parts)
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FOR PEN DRIVE CLASSES CONTACT NO. 9977223599, 9977213599 E-MAIL- [email protected]
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Capital budgeting, Cost of capital, Net present value, Internal Rate of Return http://www.garguniversity.com Check out Ebook "Mind Math" from Dr. Garg https://www.amazon.com/MIND-MATH-Learn-Math-Fun-ebook/dp/B017QEIF18
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This tutorial video shows how to use Microsoft excel or Google sheets to compute the Net Present Value (NPV) and Internal Rate of Return (IRR) on an investment based on the expected cash flows.
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Get free 10 days Corporate Finance tutorials: http://www.edupristine.com/ca/free-10-day-course/cfa-corporate-finance/ Internal Rate of Return (IRR): is a rate of return used in capital budgeting to measure and compare the profitability of investments Net Present Value (NPV): of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. More about CFA on: http://www.edupristine.com/ca/courses/cfa/ About EduPristine: Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training provider for Finance Certifications like CFA, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world. Subscribe to our YouTube Channel: http://www.youtube.com/subscription_center?add_user=edupristine Visit our webpage: http://www.edupristine.com/ca
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Net Present value (NPV) Bangla Tutorial- 4, Capital Budgeting. নেট বর্তমান মূল্য (এনপিভি) বাংলা টিউটোরিয়াল -4, ক্যাপিটাল বাজেট। Principals of Finance. BBA in national university of Bangladesh. Introduction: Conceptual framework, Financial Decision making, Role of Finance in a firm. Goal of financial management of a firm, Finance as a discipline.Short Term Financing: Characteristics and sources, spontaneous sources, unsecured and secured short term loan, Assignment and factoring of accounts receivables and inventory financing.Intermediate Term Financing: Characteristics and sources, different methods, repayment method and effective interest calculation.Time value of Money: Basic concepts, computing present value and future value : Single amounts-Annuities-Mixed streams.Long Term Financing: Characteristics and uses, Common stock capital, Preferred Stock Capital and Bond, Valuation of Stock and Bond.Risk and Return: Risk and Return fundamentals, Measuring risk; Probability distribution, Expected value, Standard deviation and co-efficient of variation. Risk premium, Risk and required rate of return, CAPM. Leverage and Risk-Financial Risk, Business Risk.Capital Budgeting Cash Flows: The Capital Budgeting Decision Process-The relevant cash flows, finding initial investment, finding the operating cash inflows, finding the terminal cash flow, summarizing the relevant cash flows.Capital Budgeting Techniques: Overview of capital budgeting techniques-Pay Back Period, Net Present Value (NPV), Internal Rate of Return (IRR), Comparing NPV and IRR.Capital Structure Decision: The firm’s capital structure-The EBIT-EPS approach to capital structure, Choosing the Optimal Capital Structure.
Views: 4357 Online Education BD