Capital Budgeting: NPV, IRR, Payback | MUST-KNOW for Finance Roles

[@KenjiExplains]

👉 Learn Finance & Valuation: www.careerprinciples.com/courses/finance-valuation-course

[@m.chethankumar2420]

Your lived in which country brother

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Can you share with us the discount code for the course?

[@tarunaggarwal2511]

Big fan

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Hi Kenji, can you share a discount code for this course please.

[@sergiopadilla8453]

Watching this 20 minutes before my test begins. LFG

[@ramarisonandry8571]

The simplest method ever to calculate payback period. From Madagascar, thank you so much

[@KenjiExplains]

Great to hear! Thanks for watching

[@AMIRSOHAIL-li5do]

Bro you summed up my entire grad in an simple way❤

[@himanshugourd6978]

Most of your videos are simplified & which is one of the reason becomes more interesting & help to understand a lot

[@jca1028]

You make complex topics easy to understand. Thank you for sharing your contents. 🙂

[@KenjiExplains]

That's awesome to hear thank you!

[@wilma.espiritucrowley]

Thank you for this video. I was struggling to understand this just by reading the textbook and thus affecting my grades. You are now my go-to to understand financial management topics

[@KenjiExplains]

You're very welcome! You might also find this video useful: kzbin.info/www/bejne/Z3zZo4SFhrV2eqs

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@@KenjiExplains thank you! I will check this out.

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Wow I never seen like this......simplicity.....from Ethiopia

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you explain the topic in the simplest way....easy to understand. I'm always searching finance topics i have a hard time understanding in your channel.

[@michaelquach7046]

Great fundamental exercise for financial analysts 👍

[@KenjiExplains]

Thank you!

[@yogakannappar5885]

Thanks Kenji. Studying for a final this is super helpful

[@hidankakuzu6052]

I'm here for the learning, not necessarily due to your smile. No not, really. 🥰😊

[@KenjiExplains]

hahah thank you XD

[@syedazeem3097]

Would love a video on the Oil & Gas Industry!

[@zainabansari573]

I liked how you took real examples and explained everything through excel😍👏👏. After long time I enjoyed learning finance😌✨✨ super happyy🌟

[@bytamz9828]

Well explained. I thought this would be too hard to do, but you made it easy. Can't thank you enough ❤

[@ifeoluwadada3895]

Looking forward to your talking about scenario analysis, base, best and worst case. How this can make the model more realistic

[@zainabansari573]

Thankss a Lott sir. Whole chapter explained in one video😍👏👏👏👏

[@yohanayoku6741]

This is very helpful. Thank you so much!

[@camlex6310]

You’re better than my teachers!!

[@KenjiExplains]

Hahah thanks!

[@willan3249]

Keep going man, finance is easy with you !

[@gansito6154]

Great video and great way of explaining thank you!

U r doing great work, thanks for the lesson

[@APAPictures]

Excellent Video.. Simple way you explained

[@ifeoluwadada3895]

You are too good, well explanatory

[@sudaiskhadim-n1y]

thanks for sharing the video man lovely video

[@alaminhossain9803]

Hi kenji, How are you? I, am from Bangladesh, enjoy your blog as you make a content which helps finance processional or finance graduate like me. Please would you mind to telling me which excel tools ( i means excel's various technique and tools) are carrying significant - and should be learnt - to the finance discipline.

[@cattuonghuynh4642]

omg thank you so much, you saved my life

[@cuthbertnyakurwa6800]

Well explained thank you, but the subtitles are covering the diagram in some instances during the explanation

[@4DModding]

Very helpful explanations

[@himanshugourd6978]

Hii Kenji why don't you start teaching us VBA as well it's also great tool to learn

[@keeganwilson7616]

Great video!

[@shitijjindal6157]

Hii can you explain what's role of working capital While I'm preparing NPV statement Like what does the working capital means here 😅

[@danielcabralravelo5652]

Great content as always!

[@KenjiExplains]

Really appreciate it Daniel!

[@markanthonyartiaga5325]

This is amazing. Thank you for sharing your content.

[@vshamil1]

So well explained!

[@casonalimudgal7986]

Thanks al lot for this wonderful video

[@andreugiro2807]

Great content as always! Thanks man!😁

[@KenjiExplains]

Cheers Andy!

[@scotolivera8207]

Great video, i am wondering if you can make a video covering how to prepare a Budget ?

[@solomonbhandari-young4154]

Best channel

[@andymarci6766]

Amazing Kenji!😁

[@SavaSabev]

Amazing video

[@AdnanSharifTripleFluffyOG]

how do you determine the discount rate?

[@allenq.697]

Thanks a lot.

[@ifeoluwadada3895]

Well explanatory

[@IbrahimShaikh-hn8gn]

Dear Mr. Kenji I would like to known from where the cash inflows and outflows come. In my university life the tropics are taught us like that ways. I will very helpful if you informed me

[@tasfia5904]

Hi, can you please explain why for the payback period we have to divide the previous cash flow by the net cash flow of year 4? Thanks.

[@makitube2116]

Its very nice teaching. Please attach if you have PPT note

[@zakirkarim8345]

Thank you, it's very helpful, but I struggle to estimate the estimated inflow, do you have any tips?

[@Goatkidking]

great video thank you very much

[@KenjiExplains]

Glad you liked it!

[@prospovkeo7982]

Great video and well explained, Quick question please, does the cash outflow related to project cost only or it is also included the operation expense? And how to determine the discount rate? Thanks

[@Talia778real]

Great,thx.🙏

[@VillageAtTheBoulders]

In a multi-tenant office building is the annual cash flow the NOI or the gross income, or is it the net income after an investor pays the mortgage?

[@spotlesstv1574]

Awesome 👍🇯🇲🇯🇲🇯🇲

[@somphavansayavong]

hello Mr kenji, i got two quik question, what about when we have our own caopital, and bank loan, should we insert it on the cash inflow, and also if possible do you have a video that u explain further on financtial term such as ROI, ROI etc... Ty

[@shawn9969]

Hi would you include bank loan and its interest expense as part of the capital budgeting or even the NPV?

[@chandrasekar9843]

Should we consider bank funding the project also as investment or consider Equity only as investment for IRR calculation ?

[@MuslimIslam01]

your videos are very useful. is you course on linkedin.

[@hossamsobhey9228]

Good job. keep it up.

[@KenjiExplains]

Thank you that's the plan!

[@angelclarke1942]

Do you have any videos on cost benefit analysis?

[@petarspanovic2454]

My question is regarding the cash inflows and outflows. Say I do not have them currently as my company wants to invest into a inhouse machine that might cost $120,000. How would I do these calculations based on this ? Would I need to just assume the cash flows ?

[@prettykaypee]

Genius.

[@andrewkim485]

How do we find out the discount rate though? Can you also go over that aspect?

[@KimberlySaldanhakrichelle]

WACC

[@johndoe-id2uh]

How do you get the cash inflow data before even creating the store?

[@businessaccount3177]

thx

[@foxinusakim991]

So, all these inflow figures are estimated? How to calculate Inflows from only project 1? Thank you for your answers.

[@sonerguney3225]

Super

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[@UrbanAssassin95]

Amazing video! Do you have any tips for someone who is going into summer analyst intern program at a bank?

[@ferinfrn]

cool!!!

[@kinett2930]

Good

[@raphapam07]

How do you calculate the Discount Rate? if I only have the "Breakeven period" and the "Payback Period" ?

[@mikheilitchulukhadze8554]

Please add the video for Cash flow (Direct, Indirect) thanks in advance

[@KenjiExplains]

Working on a cash flow video for next week!

[@Wisesamakkulau1595]

i want to ask, why NPV is different if i count it using financial calculator?

[@lvbo3660]

When I do the IRR use your method, it shows zero. Could you please help why mine calculation is wrong?

[@p.nfajriani5115]

any question, where you have 1.500.000 in project 1? can you help me to explain....

[@ivanko1422]

What about terminal value? Don't we need to include that?

[@fredliu9722]

When will you get a 0% IRR but still have a very big NPV?

[@samuelokema9126]

For the payback period, shouldn't it be 3+ (45,000/495,000)? seems like the PJ needs only 45K to break even, and 3.9 years is too long!

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Hi Kenji, Hope all is well! Kindly be informed that the discount coupon is no longer working, so need your support to provide me with an active one

[@eliasfayad3102]

how calculated Payback in month and day

[@augustusg857]

If a comp has a negative npv, then it doesn't have a payback period.

[@nerveranya]

You did't explain and show how to CALCULATE the discounted payback period. I didn't get it from the video.

[@merced24]

MIRR

[@miamiwalking]

Flodesk did not send me the download after I submitted my email address. Flodesk not ready for prime time?

[@miamiwalking]

Flodesk finally provided the download once I turned off my VPN.

[@eL_gAbaS]

the IRR cell on your excel file has an error

[@samuellaary7123]

please I need scholarship to be enrolled in your program

[@willzinner8813]

Can you explain the discounted payback in more detail?

[@cyprienbazille5913]

You use the same technique as for the payback period but you discount the cash flow. Instead of summing all the cash flows to get the cumulative cash flow you sum the discounted cash flows.

[@KenjiExplains]

Great answer!

[@purvakokate1807]

on what basis did we choose discount rate as 8%. Was it just an assumption?

[@joytessiee]

Yes. In real life you can use discount rates from banks

[@jaimebeltejar8380]

I don't understand why we pick the first project if the second one is going to give us more return with less investment. Besides the payback period is lower in the second one.

[@alangerardohurta]

Watch the video again, it seems that it was not very clear to you why the first project is a better option.

[@m.chethankumar2420]

Your lived in which country brother

[@KenjiExplains]

Studied in the US but I'm from spain :)

[@faisalhadi4034]

what if there is cash inflow (from capital injection or debt) to finance the project? can we add that cash inflow in period "0"?

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First

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Hahah nice! See you on next week’s video hopefully!

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Thanks so much.