Net Present Value (NPV) Calculation Example Using Table | Non-constant (uneven) cash flows

In this lesson, we go through a great example of calculating NPV. We also explain what the Net Present Value is, why it is calculated and how to explain/interpret the answer. In this example, we use the present value interest factor (PVIF) table to discount the cash flows. This is a Net Present Value (NPV) example with uneven cash fows. Check it out.
Present Value Factor using any calculator: • Present Value Factor u...
IRR (Internal Rate of Return) Explained with Example: • IRR (Internal Rate of ...
Accounting Rate of Return (ARR) explained with example: • Accounting Rate of Ret...
Payback Period | Explained With Examples: • Payback Period | Expla...
Profitability Index | Explained with Examples: • Profitability Index | ...
Net Present Value (NPV) Calculation Example Using Excel: • Net Present Value (NPV...
NPV (Net Present Value) Using Financial Calculator | Sharp EL 738: • NPV (Net Present Value...
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Пікірлер: 101

  • @nonhlanhlamvelase7480
    @nonhlanhlamvelase74804 жыл бұрын

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    @lindiwemashaba8491

    4 жыл бұрын

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    @yash3714

    3 жыл бұрын

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  • @allankafue5501
    @allankafue5501 Жыл бұрын

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  • @karennelson4108
    @karennelson41083 жыл бұрын

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  • @billiejostepto6455
    @billiejostepto64552 жыл бұрын

    Thank you so very much for explaining how to use a table to find NPV. The best explanation I have found. 😄

  • @KI-cc2lg
    @KI-cc2lg4 жыл бұрын

    THANKYOU!!!! Much needed help, fast and clear!!!

  • @laker256
    @laker2562 жыл бұрын

    You simplified everything. Thank you

  • @thabisoposwa3714
    @thabisoposwa37143 жыл бұрын

    Great to watch a video using the South African local currency!!!

  • @thobekamaqutywa9023
    @thobekamaqutywa90239 ай бұрын

    Woow you made it more easier. Now I understand the NPV thank you.

  • @Snnowwyy
    @Snnowwyy4 жыл бұрын

    Very well put together; Very helpful and easy to understand. Thank you for the assistance.

  • @prettynadz3747
    @prettynadz37472 жыл бұрын

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  • @linanjekwa2667
    @linanjekwa26672 жыл бұрын

    Much appreciated. Really understood everything.

  • @enalaphiri2781
    @enalaphiri27812 жыл бұрын

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  • @Bchillnation
    @Bchillnation3 жыл бұрын

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  • @134princesa
    @134princesa2 жыл бұрын

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  • @fredrickkiiruwanjiru-lifec2446
    @fredrickkiiruwanjiru-lifec2446Ай бұрын

    Wow, i love your style of teaching simple and easy to understand.

  • @rofhiwam2411
    @rofhiwam24113 жыл бұрын

    This is really helpful. Thank you!

  • @mbavhiepriscilla4215
    @mbavhiepriscilla42157 ай бұрын

    Thank you. You are so calm and you make it easy for one to understand. Now I understand npv. Wow Keep up the good work. 🙏

  • @hamoodalthobhaney1029
    @hamoodalthobhaney10292 жыл бұрын

    god bless you, thank you so much you. Made my study life for financial management easier than ever.

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    @dannylandela83384 жыл бұрын

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    @kagisometswamere4412 жыл бұрын

    Wow you explain better than my financial management textbook

  • @kairoonnisafyzoo8486
    @kairoonnisafyzoo84862 жыл бұрын

    brilliant learnt this in under 5 mins and yet i struggled with a tutor for two weeks

  • @benjaminsam9342
    @benjaminsam9342 Жыл бұрын

    I have really enjoyed the lesson and as an economics minor student am using this tutorial to answer my take home examination questions on calculating NPV...

  • @gracemuriithi9476
    @gracemuriithi947619 күн бұрын

    Thank you so much for this content was about to give up accounting

  • @vishalsharma-zz2xm
    @vishalsharma-zz2xm2 ай бұрын

    very helpful. thank you so much

  • @rydersebele3793
    @rydersebele379311 ай бұрын

    Thanks for the help

  • @user-is3bd5dy5r
    @user-is3bd5dy5r4 ай бұрын

    Thank you sir for your explanation is make sense

  • @korlonlonloncorodambadanjo9094
    @korlonlonloncorodambadanjo90943 жыл бұрын

    Thank you so much 😊 this video really helps me.

  • @NurainlbnElisha
    @NurainlbnElishaАй бұрын

    Thanks for easy method of teaching... I really enjoyed it and understood it very well

  • @ninsiimamackiline2123
    @ninsiimamackiline21232 жыл бұрын

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    @nolife84623 жыл бұрын

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    @JosephJames-iw9zy3 ай бұрын

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  • @shasashaez9326
    @shasashaez9326 Жыл бұрын

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    @zindela2104 жыл бұрын

    Thank you so much

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    @cintaba14 жыл бұрын

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  • @muriuwangari3030
    @muriuwangari30308 ай бұрын

    Thanks 🙏

  • @gxfr795
    @gxfr7954 жыл бұрын

    This helped a lot, i prefer it in table format, thanks very much

  • @Counttuts

    @Counttuts

    4 жыл бұрын

    You are welcome.

  • @lukhanyomtshingana1962
    @lukhanyomtshingana1962 Жыл бұрын

    Very informative

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    @doreenpape6049 Жыл бұрын

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    @malathir2643Ай бұрын

    Very nice explain

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    @eliaskimutai3831 Жыл бұрын

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    @pepeseesyou59642 жыл бұрын

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    @is-haqame36255 ай бұрын

    Thanks

  • @charmainemuirhead991
    @charmainemuirhead9915 жыл бұрын

    Was a very detailed video, thank you so much

  • @Counttuts

    @Counttuts

    5 жыл бұрын

    Glad it helped. Thank you for the feedback. All the best

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    @bongakhuzwayo4871

    4 жыл бұрын

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    @Counttuts

    4 жыл бұрын

    @@bongakhuzwayo4871 Email us on info@counttuts.com

  • @Sarah-Tordjman
    @Sarah-Tordjman3 жыл бұрын

    Thanks 🙏🏻 a lot!!! Very good explanation !! Very simple and easy to do !! I wish you could be my lecturer 👨‍🏫. !! You saved my life!! I’m definitely subscribing to your channel !! 👌🏻👌🏻 I love you ❤️💖

  • @Counttuts

    @Counttuts

    3 жыл бұрын

    You are most welcome

  • @inolofatsengmodise1060
    @inolofatsengmodise10602 жыл бұрын

    Thank you

  • @aczu12345
    @aczu123454 жыл бұрын

    I learned a lot and your video really helped me thoroughly understand my lesson.

  • @palesakgasi5889
    @palesakgasi58892 жыл бұрын

    THANK YOU,U SAVED ME,DOING LAST MINUTE CRAMMING

  • @AmandaMabala
    @AmandaMabala Жыл бұрын

    Is it safe to say that i love you? Because i just started a course in Project management and we got to npv. I scratched my head in confusion. You simplified this for me. Im greatful

  • @learnmathwithprivilege
    @learnmathwithprivilege Жыл бұрын

    Thanks moguy

  • @shaniajonas2460
    @shaniajonas2460 Жыл бұрын

    I did this example but my final answer was 963 instead of 962. Is it because I'm not using a financial calculator? I understand the work much better now, thank you.

  • @biseshlama1950
    @biseshlama19502 жыл бұрын

    its 963. anyway very useful lesson. thank you so much

  • @vuyisamahlangu8197
    @vuyisamahlangu81974 жыл бұрын

    Thank you very much guys, very helpful your methods and way of explanation are easy to follow and understand. Kindly assist me in with an example on NPV and ARR where even cash flows are used. Please

  • @Counttuts

    @Counttuts

    4 жыл бұрын

    Coming up soon

  • @yongamamqeke6538
    @yongamamqeke6538 Жыл бұрын

    Yhoooo thank so much

  • @anilpargain1889
    @anilpargain1889 Жыл бұрын

    Hi sir, We're given a question in which cash flows for 2 investment options are given and we have to analyse then using NPV. But I'm confused since we don't have discount rate. Neither we are given any rate of return. Only expected cashflows are given that too are different each year.

  • @eldiablodirane5259
    @eldiablodirane52594 жыл бұрын

    i appreciate

  • @realsydney_za
    @realsydney_za29 күн бұрын

    Thank you so much. You are always helpful to my studies. I have one question, in my textbook under discounting factors they always add 1 to the percent given. (i.e rate of return is 20%) but on the table, they show 1.20. could you please enlighten me

  • @mugabodaniel1660
    @mugabodaniel16602 жыл бұрын

    good

  • @sachinpk6
    @sachinpk62 жыл бұрын

    Nicely explained. But why didn't you conclude here with advantage and disadvantage of NPV technique like in AAR and other techniques?

  • @bradleyabraham3614
    @bradleyabraham3614 Жыл бұрын

    what happens to the cash flow if you have an additional investment in year 3 for example

  • @dekageorge
    @dekageorge2 жыл бұрын

    Where did you get this interest factors from?

  • @pallavisalunkhe9049
    @pallavisalunkhe90493 жыл бұрын

    what is the use of data of scrap value?

  • @k_pab17
    @k_pab179 ай бұрын

    In a situation where you are comparing two projects eg Project A and B , with both recording positive npv what will be the conclusion

  • @thamaemohapi9147
    @thamaemohapi91473 жыл бұрын

    Please help out, how do I calculate NPV when the question has "Its cost of debt is 6% while the cost of equity is 18% with a weighted average of 50:50 capital mix of debt and equity." ?

  • @somethingunique9515
    @somethingunique95154 ай бұрын

    Your voice is calming like the voice from SpongeBob ❤

  • @silverfruit58
    @silverfruit58 Жыл бұрын

    what about the questions which are given with 12, 14 percent

  • @funzaniconstancendlovu9863
    @funzaniconstancendlovu98633 ай бұрын

    How do you get those percentages?

  • @mothepanemakhele9629
    @mothepanemakhele96299 ай бұрын

    What happens if theres amount for the cash out flow when calculating NPV

  • @farjanaakter3299
    @farjanaakter32994 жыл бұрын

    Where is the advantage and disadvantage? Can you upload this?

  • @mataneraseona2441
    @mataneraseona2441 Жыл бұрын

    WOW

  • @fanashaa3130
    @fanashaa31302 жыл бұрын

    💯👏

  • @Nay34933
    @Nay349333 жыл бұрын

    I got " -963" and not "-962..." I'm confused,how did you get to that answer?

  • @Daisy-ue9vk
    @Daisy-ue9vk2 жыл бұрын

    How do you find answers without the table

  • @st_magnetar4171
    @st_magnetar41712 жыл бұрын

    i dont think the figures of the discounted future values are absolutley accurate, or else maybe mine are not accurate. my answer for NPV of 13000 in year one, was 12.149 after using the method of Future Cash flow / (1 + 0.7) to the power of 1 = 12,149

  • @studyingwhileinyourprime4691
    @studyingwhileinyourprime469110 ай бұрын

    And what if you own the machine and would like to sell it in the 5th year for that amount?

  • @user-lz9kl8hs1i
    @user-lz9kl8hs1i7 ай бұрын

    suppose that a firm is considering an investment project which involves a net cash outlay of $450,000 and that it is expected to generate an annual net cashflow of $150,000 for 7 years. the projects target debt ratio 50%. the floatation costs of debt and share issues are estimated at 10% of the amount raised. to finance the project, the firm will issue 7 years 15% debentures of $250,000 at par ($100 face value), and new shares of $250,000. the issue price of a share is $20 and the expected dividend per share next year is 50%. what is the NPV of the project

  • @micaela-bethnorman1055
    @micaela-bethnorman10554 жыл бұрын

    it is -963!

  • @mwendadimba9487

    @mwendadimba9487

    2 жыл бұрын

    yes,that what i found asa well. -963

  • @farhanrehman8378
    @farhanrehman83783 жыл бұрын

    Why did you use the "normal present value" table the " present value annuity" table? I think u would have used present value annuity table.

  • @makhosinyawo9639
    @makhosinyawo96393 жыл бұрын

    Do you do one on one tutorials?

  • @Counttuts

    @Counttuts

    3 жыл бұрын

    Good day, yes we do. You can book a session with us via our email info@counttuts.com

  • @steezerin2147
    @steezerin2147 Жыл бұрын

    if you have a figure like this (100000) hundred thousand in bracket how do you go about it

  • @wilhelminaruben8312
    @wilhelminaruben83123 жыл бұрын

    I need help.

  • @Counttuts

    @Counttuts

    3 жыл бұрын

    We offer one-on-one lessons at reasonable rates, you can book lessons by emailing us at info@counttuts.com

  • @euniceninson3045
    @euniceninson3045 Жыл бұрын

    Let me use your question as an examples. Assuming you added the company’s required rate of return is 7% and payback period is 3 years. How would you calculate it? Will you do your calculations from year one to 3 or you will calculate all the years? Kindly help me my exams is in few days.

  • @scorpian5311
    @scorpian53112 жыл бұрын

    is it not 963?

  • @Nomtheegirl
    @Nomtheegirl3 жыл бұрын

    The answer there was supposed to be =-963

  • @sphumelelengcamu1984
    @sphumelelengcamu19843 жыл бұрын

    Hey Mr I have a question that I and many in my Durban University of technology group would like to ask you, could you please share your email address. Out lecturer is teaching this thing in a different way that I disagree with

  • @Counttuts

    @Counttuts

    3 жыл бұрын

    Good day, you can email us on info@counttuts.com

  • @trendingkenya4068

    @trendingkenya4068

    Жыл бұрын

    Each lecture has is own approach,so long as the answer is the same .I don't see any difference my dear.

  • @joanmwende7301
    @joanmwende7301 Жыл бұрын

    You haven't factored in the scrap value

  • @joanmwende7301

    @joanmwende7301

    Жыл бұрын

    In fact after adding the scrap value,it's R2 602 which is positive and it's worth investing in the machine purchase

  • @luqmanhafidh9966
    @luqmanhafidh9966 Жыл бұрын

    Man the total value is -R963