Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

Too many financial decisions are made without factoring in the time value of money. Whether providing financial planning advice related to a client’s retirement, advising a client about a business ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...

Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. Net current assets, ...

The market price of a stock doesn't necessarily reflect its intrinsic value. Several economic theories use different approaches toward valuing companies, but one of the simplest involves calculations ...

Begin with the following formula:=PV*(1+R)^NEither write this formula in an Excel spreadsheet cell or elsewhere for reference. Enter the present value in an Excel spreadsheet cell in place of "PV," ...

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 ...

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...