# 8 NPV Capital Budgeting

8. Capital Budgeting - Net Present Value Method
Caption: Net Present Value (NPV) is a financial management method used to evaluate the profitability of a long-term investment opportunity by estimating future cash flows and discounting them back to their present value using a discount rate. If the NPV is positive, the investment is considered profitable, and if it is negative, the investment is considered unprofitable. NPV is a reliable method because it considers the time value of money and all cash flows associated with the investment.
Keywords: Financial Management, Capital Budgeting, Net Present Value, Opportunity Cost, Discount Rate, Future Cash Flows, Time Value of Money, Profitability, Investment Opportunity.
1. Introduction
• #1 Financial Management
2. Time Value of Money - Compounding Techniques
• #2 Time Value of Money...
3. Time Value of Money - Discounting Techniques
• #3 Time Value of Money...
4. Time Value of Money - Monthly / Quarterly Discount | Perpetuity | Annuity Due
• #4 Time Value of Money...
5. Capital Budgeting - Accounting Profits vs Cash Flow | Depreciation and Cash Flow | Effect of loss on Cash Flow
• # 5 Capital Budgeting ...
6. Capital Budgeting - Types of Projects | Cash Flow : Outflow and Inflow | Working capital as Inflow and Outflow
• # 6 Capital Budgeting ...
7. Capital Budgeting - Payback and ARR Method
• # 7 Capital Budgeting ...
8. Capital Budgeting - Net Present Value Method
• # 8 NPV Capital Budgeting
9. Capital Budgeting - Profitability Index Method
• # 9 Profitability Index
10. Capital Budgeting - IRR - Internal Rate of Return
• #10 Internal Rate of R...
11. WACC Fundamental - Cost of Capital
• #11 WACC Cost of Capit...
12. Kd Cost of Debt - Cost of Capital
• Lesson 12 Cost Of Debt...
13. Kp and Ke - Cost of Preference and Equity Share Capital - Cost of Capital
• Lesson 13 II Cost of P...
14. WACC Problem Sum - Cost of Capital
• Lesson 14 Cost of Capi...
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NET PRESENT VALUE METHOD
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