Tags » Net Present Value

Cespedes Didn't Take a Discount to Stay With the Mets

The public perception is that by taking the Mets three year, $75 million deal, free agent slugger Yoenis Cespedes gave the Mets a “discount” or was charitable to stay. 1,491 more words


Facing a Big Decision? Math is Your Friend.

How do you make the big financial decisions in life?

Many people, if not most, can make these decisions by trusting their gut.

If that’s you, well, I envy you. 1,002 more words

Alternative Energy

Problem of the Month: Renting versus Buying

People buy homes for many reasons, but when should you rent or buy a home if you are only looking at monetary considerations?

Khan Academy has a… 447 more words


Capital Budgeting Techniques-Practical Exercise

Kisim Tasol Ltd wishes to analyze a proposed project using the NPV method. The outlay on the project is K480 000. The organization has forecast the year-end flows shown in the table below. 380 more words

Project Evaluation: Internal Rate of Return and Modified Internal Rate of Return

This method takes into account the magnitude and timing of cash flows. This method is also known as Discounted Cash Flow Method or Time Adjusted Rate of Return Method and is used when the cost of investment and the annual cash inflow are known while the unknown rate of earning is to be ascertained. 237 more words

Net Present Value

Project Evaluation: Net Present Value Method

This is the modern method of evaluating investment proposal. Net Present Value (NPV) is defined as the excess of present value of project cash inflows over that of outflows. 373 more words