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 ...

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.

Discover why it is important to include changes to net working capital as a component in calculating the net present value (NPV) of a company.

Raiffa, Howard. "Methods of Calculating Net Present Value and Internal Rate of Return, Programmed Exercises." Harvard Business School Supplement 171-261, December 1970. (Revised May 1991 ...

Understanding the value of an annuity will help you invest better. Learn about the difference between present and future values and how to calculate them.

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975 ...

Everything you need to know to calculate an interest rate with the present value formula.