Everything is as you say, however I just wanted to point out that NPV refers to the NET PRESENT VALUE, not the PV. The difference between the NPV and the PV is quite huge. The NPV is your investment PLUS the PV of the future cash flows, and in real life our first number (the investment) will be negative of course. Thus the NPV and the PV are quite different things. Im just clarifying for the viewers :). However, great video :).
@esjaybee21616 жыл бұрын
Helped with my Masters homework in 2018. Thank you!!
@adanmartinezmjc8 жыл бұрын
you just saved my life. Thank you
@asmaakter86074 жыл бұрын
It's really a very helpful video and content is exactly according to this formula. Many Many Thanks
@Shaylee_W7 жыл бұрын
Seriously thank you so much. I needed this so badly.
@minthos40455 жыл бұрын
Dude whats the point of the 1st method which is a bit time consuming. Glad you showed the NPV function afterwards.
@leejoohui119111 жыл бұрын
Hi there! Would it make much difference whether we add up all the cash flows (by dragging across the row) as shown in your video from 6:01 - 6:05 leading to a formula of NPV(rate, value1:value7) compared to following the formula given in excel ie. NPV(rate, value1, [value2], [value3], ... , [value7])? Theoretically, does both notation symbols : and , imply similar function of summing up values? I noticed that they both produce the same result anyway.
@nst94275 жыл бұрын
Thanks for showing this! I was wondering how to enter an initial cash flow.
@Surfwtw12 жыл бұрын
I also did it the long way to show that it was correct. I got the same answer using both methods which confirms the accuracy. I am not sure why Excel only have NPV but to use NPV in Excel if there is an initial investment (Cash outflow) then you would enter it as a negative number before the NPV formula." =- initial investment+NPV(rate, value1...)"
@cindylove75295 жыл бұрын
Thanks for sharing, I didn't know the NPV function before.
@IksMidwinter7 жыл бұрын
this just saved me. thank you for this.
@leejoohui119111 жыл бұрын
Sry if this seems to be a very basic question but thanks for being patient in answering. Cheers!
@kristyli72685 жыл бұрын
how would you find it quickly it's for beginning of the year instead of OA?
@hyacinth4118 жыл бұрын
Awesome thanks....this helped me bunches Financial mgt 3331: uneven cash flow for present value
@athirahfirdaus7 жыл бұрын
THANK YOU!
@Surfwtw12 жыл бұрын
In Excel you can use NPV to find the PV and just assume the initial investment is 0. Then you will have the same result.
@za3team3885 жыл бұрын
تستاهل احلى بوسة
@jacobstromburg58035 жыл бұрын
skip to 5:23
@sweettooth69667 жыл бұрын
What can i do if i have 110000000000000000000000000000 year to calculate :)
@y.r.76185 жыл бұрын
or if you have $100 today and save it in your piggy bank and 20 years later you find that piggy bank in your closet, those $100 will probably not buy you much because everything will be more expensive than 20 years ago.