NPV and IRR explained

Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value explained (including present value and future value): • Net Present Value (NPV...
Internal Rate of Return explained: • Internal Rate of Retur...
NPV IRR Payback period scenarios: • NPV IRR Payback period...
Time value of money • Time value of money ex...
How to calculate #NPV in Excel • NPV in Excel
How to calculate IRR in Excel • IRR in Excel
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: KZread videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!

Пікірлер: 617

  • @TheFinanceStoryteller
    @TheFinanceStoryteller4 жыл бұрын

    Lots of exciting and helpful new videos coming up! Be sure to click the like button, subscribe and turn on notifications to ensure you don't miss anything. Now that you learned how the NPV and IRR concepts work, your next step is to understand the impact of various scenarios on the NPV and IRR outcomes: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @j.revathireva4909

    @j.revathireva4909

    Жыл бұрын

    😊

  • @ibsamohamed740
    @ibsamohamed7404 жыл бұрын

    I can't thank you enough. I really can't. You explained to me 2 weeks worth of materials in less than 10. God bless you

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    So happy to hear that, Ibsa Mohamed! That is wonderful. Thank you for commenting. I think you should watch the NPV IRR payback scenario video next to understand this even better :-) kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @nickyanna3571

    @nickyanna3571

    4 жыл бұрын

    This single video has just taught me a full term of university coursework... Somebody remind me why I'm paying £9k a year

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    @@nickyanna3571 Thank you! That is both a hilarious as well as saddening statement on the experiences of university education. Get your certificate and get out of there into the real world! ;-)

  • @konstancyja82
    @konstancyja825 жыл бұрын

    Finally, explained in a way thats easy to understand! I suggest all PMP students to watch it!

  • @goddessalumni2355

    @goddessalumni2355

    3 жыл бұрын

    🤦🏽‍♀️🥰🤘🏽

  • @rauljimenez5485
    @rauljimenez54855 жыл бұрын

    I am loving your short and concise videos. They cover the key concepts and make them very clear!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you for the kind words, Raul! Hope there are more videos on the Finance Storyteller channel that are useful to you. Please spread the word to friends and colleagues! :-)

  • @abidullahkhamosh2099

    @abidullahkhamosh2099

    4 жыл бұрын

    I did not understand where does this 35, 117 en (46) come from? how has he this calculated?

  • @endangeredspecies5005

    @endangeredspecies5005

    4 жыл бұрын

    @@abidullahkhamosh2099 35 came from calculating the future discounted cash flows of 333+278+231+193 which is equal to 1035 and subtracting this 1035 from the initial investment of 1000 and you got this 35. i hope this will help you.

  • @cliftonaurelius3060
    @cliftonaurelius30604 жыл бұрын

    I can't.thank you more. I was in class and completely clueless what the lecturer was teaching. As a slower learner, you're really a blessing to us. Thank you so so so much ❤️

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Clifton! I have a few more NPV and IRR examples for you in this video: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html and recently finished a video on the related topic WACC kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @abidullahkhamosh2099

    @abidullahkhamosh2099

    4 жыл бұрын

    I did not understand where does this 35, 117 en (46) come from? how has he this calculated

  • @cliftonaurelius3060

    @cliftonaurelius3060

    4 жыл бұрын

    @@TheFinanceStoryteller thank you! I needed the WACC video and you made it. So timely.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    @@cliftonaurelius3060 You're welcome, Clifton! Glad to hear that.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    @@abidullahkhamosh2099 Hello Abidullah! Let me walk you through the formula to arrive at $117 in project B, then you can replicate the same calculation for the other projects A and C. The undiscounted cash flow in project B are Year0 ($1000) Year1 $600 Year2 $500 Year3 $300 Year4 $200. The discounted cash flows for those are are ($1000) + $600/1.2 + $500/1.44 + $300/1.728 + $200/2.0736. If that is still confusing, then watch the related video specifically on NPV: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @bonganimanini7748
    @bonganimanini77483 жыл бұрын

    Best NPV and IRR explanation I've ever heard. Thank you

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Happy to hear that, Bongani! I have videos on related capital budgeting techniques for you in this playlist: kzread.info/dash/bejne/jKl8wdNuk9Wnh8o.html

  • @AndresSanabriaMusic
    @AndresSanabriaMusic3 жыл бұрын

    A semester in less than 10 minutes

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Wow, thank you, that's a great compliment. Here's the link to the playlist with related concepts like WACC, crossover rate, etc kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @Earth_By_Board

    @Earth_By_Board

    2 жыл бұрын

    I’m thinking of getting into accounting. Is this exaggerated? 😂

  • @lilnine3293

    @lilnine3293

    2 жыл бұрын

    @@Earth_By_Board yeah its very exaggerated, its more like a week or 2

  • @lsansco3012

    @lsansco3012

    2 жыл бұрын

    @@Earth_By_Board yes. It’s covered in one lesson for like 20 minutes.

  • @alexnumssen2098

    @alexnumssen2098

    2 жыл бұрын

    Not really

  • @Hoshi_Poshi
    @Hoshi_Poshi3 жыл бұрын

    I'm italian and I was struggling with this for a course in english, thank you this video is very easy to understand!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Ciao! Very happy to hear that. Greetings from the Netherlands!

  • @starm5556

    @starm5556

    3 жыл бұрын

    @@TheFinanceStoryteller Hey. Well explained. How did you get the cash inflows for each? How do you determine the value of each project and which to choose, besides comparing npv. Does a higher or lower irr rate matter ? As well as payback period ? Would you choose an early payback period project that offers a lower amount with a wacc of 12.5% payback of 1,5 years and net present value of 850 000 with irr of 11% or.... a project with a wacc of 12.5% at a period of 2.7 years and Npv of 1500 291 with irr of 19.26% and why ?

  • @lukasrohler2074

    @lukasrohler2074

    3 жыл бұрын

    I’m American and I was struggling as well, I’m convinced finance is it’s own language and culture haha thanks for making this video!

  • @loveelykiim1001
    @loveelykiim10012 ай бұрын

    currently reviewing for my cma exam and i kind of struggling with this topic but you explained it in just 6 minutes and i can't thank you enough! you are a lifesaver!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 ай бұрын

    Happy to help! I have a playlist for you with related topics like payback, discounted payback, WACC, etcetera: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB

  • @loveelykiim1001

    @loveelykiim1001

    2 ай бұрын

    @@TheFinanceStoryteller thank u so much!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 ай бұрын

    @@loveelykiim1001 Please share with your fellow students!

  • @MundaneMuser
    @MundaneMuser4 жыл бұрын

    My brain hurts.

  • @vikram_sekar
    @vikram_sekar5 жыл бұрын

    Excellent. The perfect video which cleared all my queries on NPV and IRR and provided a base on these concepts. Covered what is it and how to calculate it. Thanks for posting this awesome video.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you, thank you, thank you for the very kind words! Happy you enjoyed it. Please tell all your friends and colleagues about it. ;-) Here's the link to two "bonus videos" on how to calculate NPV and IRR in Excel: NPV kzread.info/dash/bejne/nIWTsKaKYtS8hqQ.html IRR kzread.info/dash/bejne/fmR-pcluhLvblMY.html

  • @Dorotheen
    @Dorotheen4 жыл бұрын

    Thank you so much! I was having a hard time to understand the topic, but you were amazing in clarifying it.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome! Please subscribe to the channel, I have related videos on topics like WACC and payback period as well.

  • @user-ps8ln5ke2f
    @user-ps8ln5ke2f3 жыл бұрын

    Man. you are a great teacher! Many folks make it hard to understand using jargons and stuff. never understood 100% but now I have nailed it. Thanks so much!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Thanks for the kind words! Very happy to hear that! I have many more related videos on WACC, payback period, etcetera that could be helpful for you: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html Please subscribe, and spread the word to fellow students!

  • @Anna_Australia
    @Anna_Australia2 жыл бұрын

    I finally found your video, which helps me a lot!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Glad to hear it! More NPV, IRR, payback, WACC and related concepts discussed in this playlist: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @robertbotta6536
    @robertbotta65364 жыл бұрын

    Without a doubt the best explanation of npv and irr on KZread. Thank you.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you very much, Robert! Wonderful to hear that.

  • @johannakenwood3359
    @johannakenwood33592 жыл бұрын

    Omg thank you so much!! A lecture and multiple videos later, your video finally explained it thoroughly in under 4 mins. 3 years and a pandemic later your videos still teaching!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Great to hear, Johanna! Yes, this video has been very successful, and I am happy that so many people found it useful to understand capital budgeting concepts. Here's the playlist with related terminology on WACC etcetera kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @johannakenwood3359

    @johannakenwood3359

    2 жыл бұрын

    @@TheFinanceStoryteller thank you I will be needing it! Just started supply chain management last week. Thanks so much!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    @@johannakenwood3359 You have come to the right place! Here are my thoughts on inventory management: kzread.info/dash/bejne/do6cqrWLZMKfcpc.html

  • @jlee8
    @jlee82 жыл бұрын

    I wish I had access to your videos during University. This is one of the best and clear explanations of NVP and IRR. Thank you

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Wow, thank you, Jenny! Please spread the word. Here is the link to my playlist with more capital budgeting content: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @alihussainkurbanhussainbhi7748
    @alihussainkurbanhussainbhi7748 Жыл бұрын

    I really can't thank you enough. I wish I had a teacher like you. God bless you. Amen

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    Жыл бұрын

    Happy to help! I can be your virtual teacher on KZread! Here is the link to a playlist with related videos like WACC: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @ashwinudapikar3290
    @ashwinudapikar32905 жыл бұрын

    Very well explained! Thank you so much for the video!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Great to hear that, Ashwin! Thank you for watching, and welcome to the channel. :-)

  • @themotobanditshow
    @themotobanditshow5 жыл бұрын

    Thank you this is so simple for me to understand. Currently in my second year completing financial risk. Thanks!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Great to hear. Please spread the word! :-)

  • @mooniebo2752
    @mooniebo27525 жыл бұрын

    easiest explanation I've seen. thank you! you've helped me prepare for my exam!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you for commenting! Wishing you all the best with your exam. Maybe the related video on WACC vs IRR can help you as well kzread.info/dash/bejne/jKl8wdNuk9Wnh8o.html

  • @OsaroOyegun
    @OsaroOyegun5 жыл бұрын

    Another concise and well explained video. Thank you!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you! Happy to hear you enjoyed it.

  • @curtiscurry5775
    @curtiscurry57752 ай бұрын

    You made it all make sense! Thank you!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 ай бұрын

    Wonderful to hear that!!! Thank you for watching and commenting. 😊

  • @TheExceptionalState
    @TheExceptionalState4 жыл бұрын

    Clear and concise! Thank you!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Nice to hear that! Thank you, Angus!

  • @user-tp5ko7zk6g
    @user-tp5ko7zk6g10 ай бұрын

    The best explanation. Thank you !

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    10 ай бұрын

    Thank you very much for the compliment. Related topics like WACC and payback period are discussed in this playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB

  • @nokuzolaholomisa6223
    @nokuzolaholomisa62235 жыл бұрын

    Thank you so much, I'm writing tomorrow and I was just lost, everything is clear now. Thank you again x

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome! :-) My follow-up video on WACC vs IRR might also be helpful for you: kzread.info/dash/bejne/jKl8wdNuk9Wnh8o.html

  • @kaustubhnarkar9820
    @kaustubhnarkar98203 жыл бұрын

    my dear friend this is one of the best ways you have explained these concepts , they don't explain this as good in universities and professional finance courses really kudos to you mate .

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Thank you so much for the kind words, Kaustubh! I approach each and every video from the real world perspective. Please subscribe to the channel, and take a look at the NPV IRR WACC playlist for more related videos: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @omarzeyad1382
    @omarzeyad13823 жыл бұрын

    thank you so much for this video, I spent 3 Hr trying to understand this on the MBA module material, but now its cristal clear after seeing this video

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're welcome! Great to hear that, Omar. I have videos for you on related topics like WACC as well kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html Please spread the word to fellow students!

  • @konstancyja82
    @konstancyja824 жыл бұрын

    Just used this video for my pmp exam learning. Valueable information in just few minutes.... Thank you

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thanks! Great to hear that. I think you will enjoy the follow-up video on NPV IRR payback scenarios as well, for a deeper understanding: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @AAA11546
    @AAA115464 жыл бұрын

    Thank you, very clearly explained!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you for watching and commenting, Tomas! I made a follow-up video last week, playing around with several scenarios of investment and benefits. Hope you like that one as well! kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @nikitagorbachevskiy6664
    @nikitagorbachevskiy66645 жыл бұрын

    Perfect! Thank you!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome! I have related videos on payback method and ROI on my channel as well: kzread.info/dash/bejne/oWijyJOufra4mdY.html

  • @jamesperry3837
    @jamesperry38374 жыл бұрын

    _Your videos r_ *super.* _Concise and to the point of understanding._ *Tysm*

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, James! Thank you for watching and commenting.

  • @ericbertoldo1056
    @ericbertoldo10564 жыл бұрын

    I appreciate your work on these videos and making it easier for others to understand. On the things I didn’t understand you answered those who had questions below. Great work!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Wonderful to hear that, Eric! Thank you for watching and commenting. The questions from viewers indeed helped to clarify some points. I have made a video on NPV and IRR scenarios as a follow-up: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @kevinharilal8288
    @kevinharilal82884 жыл бұрын

    Dude your videos are really good. I appreciate your assistance tremendously

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you, Kevin! That's awesome. Working on my next video right now. Happy to help!

  • @trevorspear5970
    @trevorspear59705 жыл бұрын

    Thank you that make sense now!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Great! Happy to hear that. :-)

  • @user-zm1dm4il4y
    @user-zm1dm4il4y3 жыл бұрын

    I don't know why, but I'm kinda addicted to the accent! lol thanks for the useful information! learned a lot!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Thanks for watching!

  • @notevoyadarminombre156
    @notevoyadarminombre1563 жыл бұрын

    You deserve a cookie. Thank you very much for this explanation.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're welcome! Opportunity to buy me cookies, a cup of tea, etc. at: kzread.info/dron/QQJnyU8fALcOqqpyyIN4sg.htmljoin ;-)

  • @zennmaiaguerrero8348
    @zennmaiaguerrero83483 жыл бұрын

    The way how we solve it in business class way back in uni was a shortcut so after months, it was already forgoten. Thank you for explaning the basis of it. Def understand it now. 😊

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Glad it helped! Here are some more examples to really "get" the deeper ideas behind the calculations kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @rso143
    @rso1434 жыл бұрын

    I can't thank you enough about this video, the concept of NPV which I heard yesterday which the professor was not able to explain and left me confused are now solved for just six minute video. although your calculation of IRR is not clear but will use Excel as I know basics of Excel. thank you so much

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you for the compliments, Rayso! Yes, I agree I could have spent more time on IRR in this video. I made follow-up videos to go deeper into IRR, compiled in this playlist: kzread.info/dash/bejne/k4dsuqqTZrGzY7g.html

  • @todddahlquist7584
    @todddahlquist75844 жыл бұрын

    I finally understand the difference - thank you!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Great to hear that, Todd! Happy to help. :-)

  • @abidullahkhamosh2099

    @abidullahkhamosh2099

    4 жыл бұрын

    I did not understand where does this 35, 117 en (46) come from? how has he this calculated

  • @saodatkurmanayeva434
    @saodatkurmanayeva4342 жыл бұрын

    this helped so much, you're a saviour!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Happy to hear that, Saodat! Please spread the word!

  • @vanderpant2116
    @vanderpant21164 жыл бұрын

    Thank you for a clear concise and easy to understand vid 😁

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Very happy to hear that! Thank you.

  • @abheranmoodley4950
    @abheranmoodley49502 жыл бұрын

    Thank you very much for this video! It is very clear and easy to understand.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Glad to hear that, Abheran! Related concepts like WACC, payback period and crossover rate are covered in this playlist: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @raquelm.w.7974
    @raquelm.w.79744 жыл бұрын

    Very helpful, thank you!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Raquel! The sequel to this video might also be useful for you. It covers various scenarios of investment level and benefits: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @nileshrathod3153
    @nileshrathod31534 жыл бұрын

    Really explained well. I got in the first attempt. Before watching this video, I watched other videos, but I couldn't understand. Thank you for your efforts!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Nilesh! Very happy to hear that. I think you will like the related video on NPV and IRR scenarios as well: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @abidullahkhamosh2099

    @abidullahkhamosh2099

    4 жыл бұрын

    I did not understand where does this 35, 117 en (46) come from? how has he this calculated

  • @MM-zd4md
    @MM-zd4md7 ай бұрын

    awesome explanation. Thank you !

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    7 ай бұрын

    Good to hear that. Glad it was helpful! Videos on related topics like WACC and discounted payback are available in this playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB

  • @janifahbadio6684
    @janifahbadio66843 жыл бұрын

    This is a simple and great explanation. Thank you so much :)

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Glad you liked it, Janifah! Thank you for watching and commenting. My follow-up video on NPV IR payback period scenarios might also be useful for you to watch: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @abusufian8667
    @abusufian8667 Жыл бұрын

    This video is very crucial to understand the core concept of AFM....thank you!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    Жыл бұрын

    Thank you very much for the kind words! Related concepts like WACC are discussed in this playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @JohnRMTurner
    @JohnRMTurner3 жыл бұрын

    Great video. Thanks for explaining this with a simple example.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Glad it was helpful, John!

  • @daxiaohaha4172
    @daxiaohaha41724 жыл бұрын

    Thanks, really enlightened video, thumps up!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Wow, thank you so much! Happy to hear that.

  • @Jhangerr
    @Jhangerr5 жыл бұрын

    Simple and good explanation. Thank you.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome! :-)

  • @nimidi2568
    @nimidi25682 жыл бұрын

    Shortest and best way to understand the concept. Thanks

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Glad it was helpful!

  • @kennethromanowski9614
    @kennethromanowski96145 жыл бұрын

    Excellent presentation. Concise and precise.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you very much, Ken! Great to hear that. I think you might also enjoy the related video on ROI versus payback: kzread.info/dash/bejne/oWijyJOufra4mdY.html

  • @rummanamarzia1288
    @rummanamarzia12884 жыл бұрын

    Thank u so much sir.. Understood many things what didn’t in class....

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you, Rummana! Happy to hear that. And well done searching for additional information to expand what was covered in class! I think you will like my NPV/IRR scenarios video as well that covers these concepts with more examples: kzread.info/dash/bejne/Y46Iq9mmnpSpnZM.html

  • @TheExceptionalState
    @TheExceptionalState4 жыл бұрын

    Very clear. Thanks!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Angus! Happy to help. :-)

  • @stevenyang9682
    @stevenyang96823 жыл бұрын

    thanks a lot! this is much clearer than lecture!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Great to hear that, Steven! Thank you for watching. I also cover related topics like WACC, crossover rate, and profitability index on my channel.

  • @benedictgrochla5907
    @benedictgrochla59072 жыл бұрын

    Pretty good, thank you!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Happy to hear that, Benedict! Take a look at my capital budgeting playlist for related topics: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @kedard134
    @kedard134 Жыл бұрын

    Thank you for explaining this is a simple no fuss manner.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    Жыл бұрын

    Yeah, let's get it done in 5 minutes, if we can, and move on to the next topic. 😎

  • @meenamenon2219
    @meenamenon22192 жыл бұрын

    so so lucid! THANK YOU

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Thank you, Meena! Related topics are in this playlist: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @elanalistafinanciero
    @elanalistafinanciero Жыл бұрын

    Excellent presentation, Thanks so much !!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    Жыл бұрын

    You are welcome! 😊 Please spread the word!

  • @jngf100
    @jngf1002 жыл бұрын

    Very clearly explained - thanks kindly!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    You're very welcome!

  • @jonathanlewin9775
    @jonathanlewin97755 жыл бұрын

    GREAT VIDEO THX U!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome, Jonathan! Thanks for the feedback. :-)

  • @endangeredspecies5005
    @endangeredspecies50054 жыл бұрын

    i will bet a $10000 if the presenter is not from arabic descent. the accent is absolutely nourishing and left your spirit.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Personally, I enjoy good videos regardless of the accent! ;-) But as you are asking, the accent is Dutch (i.e. from the Netherlands). I did spend a good amount of time delivering training in Abu Dhabi and Dubai, so had the pleasure of visiting the Middle East multiple times.

  • @networkteamtools6528
    @networkteamtools65284 жыл бұрын

    you've made complicated things, simple.... well done✊

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thanks a lot! 😊 Very happy to hear that!

  • @cortney4soul
    @cortney4soul2 жыл бұрын

    The best breakdown i have seen.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Thank you, Cortney! That is wonderful to hear. More capital budgeting videos in this playlist: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @shreeniwas048
    @shreeniwas0485 жыл бұрын

    Wow very clearance of concept. You make it in simply.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you! Glad you enjoyed it. :-)

  • @olayinkaafun5469
    @olayinkaafun54693 жыл бұрын

    Concise and straight to the point. Thank you.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Exactly, Olayinka! :-) Here's the link to related videos on capital budgeting that could be helpful for you as well kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @olayinkaafun5469

    @olayinkaafun5469

    3 жыл бұрын

    @@TheFinanceStoryteller Thanks alot.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    @@olayinkaafun5469 You're welcome! Let me know if you think any topics are missing, I am always looking for good topics for new videos.

  • @TeachAManToAngle
    @TeachAManToAngle3 жыл бұрын

    You really do a great job explaining this. It had been years since I learned this in business school. Very good refresher

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Glad it was helpful! I have related videos on payback period, WACC, etc. as well for you as a refresher: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @rehanrana1
    @rehanrana15 жыл бұрын

    Thanks so much. helped me alot.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Great to hear that. The related video on payback period might also be interesting for you to watch: kzread.info/dash/bejne/eH6eqctwl9axY6Q.html

  • @user-xp1rl2wt7y
    @user-xp1rl2wt7y4 жыл бұрын

    Thank you for your easy and clear explanation.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome!!!! Thank you for watching and commenting.

  • @poorvir9416
    @poorvir94164 жыл бұрын

    Thanks a lot Philip De Vroe!! 😊

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Poorvi Radhakrishnan! :-) Thank you for watching.

  • @cheriewong4548
    @cheriewong45484 жыл бұрын

    omg you explained this so well... im so amazed!!!! THANK YOUUUUUUUUUU

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Happy to help, Cherie!!! :-)

  • @cheriewong4548

    @cheriewong4548

    4 жыл бұрын

    @@TheFinanceStoryteller Subscribed & liked. keep it up :-)!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Wonderful. :-) Please tell all your friends!

  • @mundheral.askari3450
    @mundheral.askari34503 жыл бұрын

    Thank you so much, this is really helpful :-)

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're very welcome! Great to hear that.

  • @leoclarkin5944
    @leoclarkin59445 жыл бұрын

    clearly understood, thx

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you, Leo!

  • @mirnahanger9054
    @mirnahanger90543 жыл бұрын

    Thank you, this was a very clear explanation or IRR.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're welcome! Happy to hear that. Related topics in this playlist: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @vy6821
    @vy68214 жыл бұрын

    Thank you so much!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Valerie! :-)

  • @tumil8256
    @tumil82564 жыл бұрын

    Thank you so much...you’re the best

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Tumi! Welcome to the channel, please subscribe.

  • @slay9470
    @slay94706 ай бұрын

    Thank you bro you deserve a like

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    6 ай бұрын

    Happy to help! Have a look at the related videos in the NPV IRR WACC playlist as well, there could be more useful stuff in there: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB

  • @nestrodamus
    @nestrodamus Жыл бұрын

    This is sooo good!!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    Жыл бұрын

    Thank you!!! More videos on related concepts like WACC in this playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html

  • @tinafarahani2525
    @tinafarahani25253 жыл бұрын

    thank you so much!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're welcome, Tina! :-)

  • @sarthakkumar3326
    @sarthakkumar33265 жыл бұрын

    Great video all clear

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you for watching and commenting!

  • @SarwatRattani
    @SarwatRattani4 жыл бұрын

    really appreciated!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Sarwat! Happy to help!

  • @bobbydreamsforu
    @bobbydreamsforu4 жыл бұрын

    WoW !! Thank you very much.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome, Satish! Glad to hear you liked it.

  • @bobbydreamsforu

    @bobbydreamsforu

    4 жыл бұрын

    Your explanation is beyond wonderful ❤️ Thank you brother !!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    @@bobbydreamsforu If you liked this video, then I recommend the related videos in the NPV IRR WACC playlist as well: kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @FunnyAsian00
    @FunnyAsian002 жыл бұрын

    I hate math and I'm sociology major but I understood this guy is a genius

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Thank you, John! Happy to help. 😎

  • @Michael-je5bn
    @Michael-je5bn2 жыл бұрын

    Yes, very good stuff.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Glad you enjoyed it, Michael!

  • @mamtasaravanan985
    @mamtasaravanan9852 жыл бұрын

    Very nicely explained.Love your videos.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Thank you so much, Mamta! 🙂 That is nice to hear. Please spread the word!

  • @RahmatAli-yg9tv
    @RahmatAli-yg9tv9 ай бұрын

    Excellent, thanks ❤

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    9 ай бұрын

    You're welcome 😊 Related concepts are discussed in the NPV IRR WACC playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB

  • @capitolia
    @capitolia5 жыл бұрын

    Thank you very much.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome, Franco! :-)

  • @endragoth
    @endragoth10 ай бұрын

    Thanks a lot for sharing, very educational and useful

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    10 ай бұрын

    My pleasure! Related concepts like WACC are discussed in this playlist: kzread.info/dash/bejne/Y4NhpsSthtjLfdo.html&pp=gAQBiAQB Please spread the word to friends and colleagues.

  • @mrtural4977
    @mrtural49774 жыл бұрын

    Thank you very much for good explanation

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome! :-)

  • @DeshanTech
    @DeshanTech3 жыл бұрын

    Thanks clear explanation.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Great to hear that! Thank you! Please subscribe.

  • @DeshanTech

    @DeshanTech

    3 жыл бұрын

    @@TheFinanceStoryteller Already done, Hit the bell icon too.

  • @shonaviv7360
    @shonaviv73603 жыл бұрын

    Thanks a lot!!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    You're welcome, Shon!

  • @dreams_in_a_pie
    @dreams_in_a_pie4 жыл бұрын

    Perfect!!! I understand what NPV and IRR are!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Great to hear that! Thank you! :-)

  • @abidullahkhamosh2099

    @abidullahkhamosh2099

    4 жыл бұрын

    I did not understand where does this 35, 117 en (46) come from? how has he this calculated

  • @dreams_in_a_pie

    @dreams_in_a_pie

    4 жыл бұрын

    @@abidullahkhamosh2099 For NRV project A 35 333+278+231+193-1000=35 Same calculation for project B and C

  • @kekelidenutsui6517
    @kekelidenutsui65172 жыл бұрын

    You made it all. Am loving it🔥👌

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    2 жыл бұрын

    Yes! Thank you!

  • @AnnaHaTexas
    @AnnaHaTexas4 жыл бұрын

    thank for sharing

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Thank you, Anna! Please subscribe to the channel, and share the video with friends and colleagues.

  • @Holland1994D
    @Holland1994D4 жыл бұрын

    Hey je bent Nederlands! Thanks, duidelijk uitgelegd, jammer dat ik nu pas je video zie ipv voor mijn tentamen. Gelukkig snap ik het nu wel een stuk beter voor het hertentamen!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    Jazeker! Welkom! Beter laat dan nooit. ;-) Veel succes met je hertentamen. Hier is de link naar een playlist met alle NPV/IRR gerelateerde termen (ook payback, WACC, etc.): kzread.info/dash/bejne/gGGgsJexf7Wvp8Y.html

  • @Zwart-in6vc

    @Zwart-in6vc

    3 жыл бұрын

    @@TheFinanceStoryteller wat is nou precies de relatie tussen de npv en IRR? Deze vraag krijg ik op mijn assessment

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    @@Zwart-in6vc Dat draait om wat je als input neemt, en wat als output. Kort samengevat in het Engels: NPV Step 1) Determine nominal (undiscounted) cash flows , Step 2) Apply discount rate to calculate present values, Step 3) Calculate Net Present Value (NPV) by summing the discounted cash flows. IRR Step 1) Determine nominal (undiscounted) cash flows, Step 2) Set NPV at 0, Step 3) Calculate Internal Rate of Return (IRR) through trial and error, or Excel. Zie ook: kzread.info/dash/bejne/k4dsuqqTZrGzY7g.html

  • @tosin8885
    @tosin88855 жыл бұрын

    Perfect

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    Thank you! Made a follow-up video on how to calculate NPV in Excel: kzread.info/dash/bejne/nIWTsKaKYtS8hqQ.html

  • @josephfriday2661
    @josephfriday26613 жыл бұрын

    Very good, I got it.

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    3 жыл бұрын

    Good to hear that, Joseph!

  • @zainabali5951
    @zainabali59515 жыл бұрын

    Thanks... simple to understand

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    5 жыл бұрын

    You're welcome! Happy to hear that! :-)

  • @zainabali5951

    @zainabali5951

    5 жыл бұрын

    @@TheFinanceStoryteller it's my honour...

  • @VV-zb7pm
    @VV-zb7pm4 жыл бұрын

    thank you!!!!

  • @TheFinanceStoryteller

    @TheFinanceStoryteller

    4 жыл бұрын

    You're welcome! :-)