NPV calculates profitability using all projected cash inflows and outflows, considering time value of money. A positive NPV suggests a profitable project; a negative NPV suggests a loss. NPV's ...

When a company is making capital budgeting decisions -- whether it's something as small as buying a new copier vs. servicing an old one or as big as entering a new market -- it must weigh the expected ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. The next time you cover this topic, consider teaching students how to calculate ...

The PMT function is an Excel Financial function that returns the periodic payment for an annuity. The formula for the PMT function is PMT(rate,nper,pv, [fv], [type]). The NPV function returns the net ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

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 ...

Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.

The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow analysis, which assesses future cash ...