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...
Check out other straight-forward examples on our channel.
We also offer one-on-one tutorials at reasonable rates.
Connect with us:
Email: info@counttuts.com
Our Website: Counttuts.com
Our Facebook Page: / counttuts
Support our Efforts: / counttuts
Пікірлер: 101
You guys have made me fall in love with accounting, I’m a financial management student and your videos make everything understandable
@lindiwemashaba8491
4 жыл бұрын
Thanks for sharing these links
@yash3714
3 жыл бұрын
Can u help with with this finance question i have pls?
wow life saver , there was no way i was going to fully understand , let alone use this concept without you guys
A relief! I am so glad I have found your channel. You explain everything so well and without any whistles and bells. Just how I like it. Thank you very much :-)
Thank you so very much for explaining how to use a table to find NPV. The best explanation I have found. 😄
THANKYOU!!!! Much needed help, fast and clear!!!
You simplified everything. Thank you
Great to watch a video using the South African local currency!!!
Woow you made it more easier. Now I understand the NPV thank you.
Very well put together; Very helpful and easy to understand. Thank you for the assistance.
Thank you for making things so simple
Much appreciated. Really understood everything.
You made it so simple and am greatful to you sir, you are good at your work
Thank you im learning well with these videos
Oh my God thank you! 😊 you just saved me a final test. Thank 😊
Wow, i love your style of teaching simple and easy to understand.
This is really helpful. Thank you!
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. 🙏
god bless you, thank you so much you. Made my study life for financial management easier than ever.
I am so glad I have found you
Brilliant... excellent tutorial
Wow you explain better than my financial management textbook
brilliant learnt this in under 5 mins and yet i struggled with a tutor for two weeks
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...
Thank you so much for this content was about to give up accounting
very helpful. thank you so much
Thanks for the help
Thank you sir for your explanation is make sense
Thank you so much 😊 this video really helps me.
Thanks for easy method of teaching... I really enjoyed it and understood it very well
Thank you so much, it has helped me alot🥺
Thank you so much for this video it help me alot
Thanks for helping bl essed man
Thanks dear,well understood ♥️📌
Thank you so much
Thanks so much
Thanks 🙏
This helped a lot, i prefer it in table format, thanks very much
@Counttuts
4 жыл бұрын
You are welcome.
Very informative
Very well executed keep up
Very nice explain
It is a great Channel. Keep it up.
thank u so much
Thanks
Was a very detailed video, thank you so much
@Counttuts
5 жыл бұрын
Glad it helped. Thank you for the feedback. All the best
@bongakhuzwayo4871
4 жыл бұрын
@@Counttuts Hi. I am struggling with MAC2602 at UNISA. Can you please help me.
@Counttuts
4 жыл бұрын
@@bongakhuzwayo4871 Email us on info@counttuts.com
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
3 жыл бұрын
You are most welcome
Thank you
I learned a lot and your video really helped me thoroughly understand my lesson.
THANK YOU,U SAVED ME,DOING LAST MINUTE CRAMMING
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
Thanks moguy
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.
its 963. anyway very useful lesson. thank you so much
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
4 жыл бұрын
Coming up soon
Yhoooo thank so much
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.
i appreciate
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
good
Nicely explained. But why didn't you conclude here with advantage and disadvantage of NPV technique like in AAR and other techniques?
what happens to the cash flow if you have an additional investment in year 3 for example
Where did you get this interest factors from?
what is the use of data of scrap value?
In a situation where you are comparing two projects eg Project A and B , with both recording positive npv what will be the conclusion
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." ?
Your voice is calming like the voice from SpongeBob ❤
what about the questions which are given with 12, 14 percent
How do you get those percentages?
What happens if theres amount for the cash out flow when calculating NPV
Where is the advantage and disadvantage? Can you upload this?
WOW
💯👏
I got " -963" and not "-962..." I'm confused,how did you get to that answer?
How do you find answers without the table
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
And what if you own the machine and would like to sell it in the 5th year for that amount?
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
it is -963!
@mwendadimba9487
2 жыл бұрын
yes,that what i found asa well. -963
Why did you use the "normal present value" table the " present value annuity" table? I think u would have used present value annuity table.
Do you do one on one tutorials?
@Counttuts
3 жыл бұрын
Good day, yes we do. You can book a session with us via our email info@counttuts.com
if you have a figure like this (100000) hundred thousand in bracket how do you go about it
I need help.
@Counttuts
3 жыл бұрын
We offer one-on-one lessons at reasonable rates, you can book lessons by emailing us at info@counttuts.com
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.
is it not 963?
The answer there was supposed to be =-963
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
3 жыл бұрын
Good day, you can email us on info@counttuts.com
@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.
You haven't factored in the scrap value
@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
Man the total value is -R963