"Capex and irr and npv" Essays and Research Papers

Sort By:
Satisfactory Essays
Good Essays
Better Essays
Powerful Essays
Best Essays
Page 1 of 50 - About 500 Essays
  • Better Essays

    NPV AND IRR

    • 1057 Words
    • 5 Pages

    ASSIGNMENT TOPIC: “THE ADVANTAGES AND DISADVANTAGES OF USINFG NPV (NET PRESENT VALUE) AND IRR (INTERNAL RATE OF RETURN)” NPV (NET PRESENT VALUE) The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. NPV compares the value of a dollar today to the value of that

    Premium Management Education Marketing

    • 1057 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Npv vs. Irr

    • 974 Words
    • 4 Pages

    NPV Versus IRR W.L. Silber I. Our favorite project A has the following cash flows: -1000 0 0 1 0 2 +300 3 +600 4 +900 5 We know that if the cost of capital is 18 percent we reject the project because the net present value is negative: - 1000 + 300 600 900 + + = NPV 3 4 (1.18) (1.18) (1.18)5 - 1000 + 182.59 + 309.47 + 393.40 = -114.54 We also know that at a cost of capital of 8% we accept the project because the net present value is positive: - 1000 + 300 600 900

    Premium Net present value Internal rate of return Cash flow

    • 974 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Assignment of Npv and Irr

    • 5255 Words
    • 22 Pages

    present value the net present value (NPV) or net present worth (NPW)[of a time series of cash flows‚ both incoming and outgoing‚ is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price‚ the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash

    Premium Net present value

    • 5255 Words
    • 22 Pages
    Good Essays
  • Best Essays

    QUESTION 2 a) What is the time value of money? flows? b) What factors need to be taken into account when choosing an appropriate discount rate? c) What do you understand by the terms (i) “net present value” (NPV) and (ii) “internal rate of return” (IRR)? d) Compare and contrast the NPV and IRR. Why is it important to “discount” future cash CONTENTS PART ONE: QUESTION 1 1. INTRODUCTION . 2. RISK 2.1 2.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    Premium Net present value Rate of return

    • 4273 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    Npv

    • 314 Words
    • 2 Pages

    NPV is short for Net Present Value and it makes difference between the present value and cost of a project. In addition‚ NPV takes into account all cash flows through out the whole life of the projects‚ as well as the time value of money. And it compares like with like as all inflows and outflows are discounted to today¡¯s date. Also‚ the cost of capital is very unlikely to be changed over a period of time. To judge if the NPV is good‚ we should see the value of it‚ and the rule is the high the better

    Premium Net present value Discounted cash flow Time

    • 314 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    npv

    • 1019 Words
    • 4 Pages

    Janice Miller American Intercontinental University Managerial Accounting 310 Instructor: Matt Keogh Introduction “Net Present Value (NPV) is the present value of the net cash inflows generated by a project including salvage value‚ if any‚ less the initial investment on the project‚” (Irfanullah‚ Jan.‚ 2013). It is preferred as one of the most reliable measures employed in capital budgeting since it accounts for the time value of money as it uses the discounted cash inflows. The net cash

    Premium Net present value

    • 1019 Words
    • 4 Pages
    Best Essays
  • Better Essays

    Npv Comparison

    • 2310 Words
    • 10 Pages

    Net Present Value and Internal Rate of Return by Harold Bierman‚ Jr Executive Summary • • • Net present value (NPV) and internal rate of return (IRR) are two very practical discounted cash flow (DCF) calculations used for making capital budgeting decisions. NPV and IRR lead to the same decisions with investments that are independent. With mutually exclusive investments‚ the NPV method is easier to use and more reliable. Introduction To this point neither of the two discounted cash flow procedures

    Premium Net present value Internal rate of return Capital budgeting

    • 2310 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    Prepare a critical evaluation of three basic methods of evaluating an investment (IRR‚ Payback and NPV). There are several basic methods of evaluating an investments that are commonly used by decision makers in both private corporations and public agencies. Each of these measures is intended to be an indicator of profit or net benefit for a project under consideration. Some of these measures indicate the size of the profit at a specific point in time; others give the rate of return per period when

    Premium Net present value Capital budgeting Investment

    • 2353 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Npv Calculation

    • 356 Words
    • 2 Pages

    this online NPV Calculation Tool http://finance.thinkanddone.com/online-n… we get the following NPV at 15% Net Cash Flows CF0 = -3000000 CF1 = 1100000 CF2 = 1450000 CF3 = 1300000 CF4 = 950000 Discounted Net Cash Flows DCF1 = 1100000/(1+0.15)^1 = 1100000/1.15 = 956521.74 DCF2 = 1450000/(1+0.15)^2 = 1450000/1.3225 = 1096408.32 DCF3 = 1300000/(1+0.15)^3 = 1300000/1.52087 = 854771.1 DCF4 = 950000/(1+0.15)^4 = 950000/1.74901 = 543165.58 NPV Calculation NPV = 956521.74 +

    Premium Net present value Internal rate of return Cash flow

    • 356 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    npv calculator

    • 369 Words
    • 2 Pages

    When cash inflows are even: NPV = R × 1 − (1 + i)-n − Initial Investment i In the above formula‚ R is the net cash inflow expected to be received each period; i is the required rate of return per period; n are the number of periods during which the project is expected to operate and generate cash inflows. When cash inflows are uneven: NPV = R1 + R2 + R3 + ... − Initial Investment (1 + i)1 (1 + i)2 (1 + i)3 Where‚ i is the target rate of return per period;

    Premium Net present value Rate of return Cash flow

    • 369 Words
    • 2 Pages
    Satisfactory Essays
Previous
Page 1 2 3 4 5 6 7 8 9 50