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:
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