Net Present Value (NPV) Calculation Example Using Table | Non-constant (uneven) cash flows

In this lesson, we go through a great example of calculating NPV. We also explain what the Net Present Value is, why it is calculated and how to explain/interpret the answer. In this example, we use the present value interest factor (PVIF) table to discount the cash flows. This is a Net Present Value (NPV) example with uneven cash fows. Check it out.
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[@allankafue5501]

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[@thobekamaqutywa9023]

Woow you made it more easier. Now I understand the NPV thank you.

[@benjaminsam9342]

I have really enjoyed the lesson and as an economics minor student am using this tutorial to answer my take home examination questions on calculating NPV...

[@mbavhiepriscilla4215]

Thank you. You are so calm and you make it easy for one to understand. Now I understand npv. Wow Keep up the good work. 🙏

[@wasengelaperez4468]

You are the best in this, I attended this lesson but I did not understand anything. Thank you so much.

[@billiejostepto6455]

Thank you so very much for explaining how to use a table to find NPV. The best explanation I have found. 😄

[@fredrickkiiruwanjiru-lifec2446]

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[@kairoonnisafyzoo8486]

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[@Counttuts]

Glad it helped. Thank you for the feedback. All the best

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[@Counttuts]

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[@biseshlama1950]

its 963. anyway very useful lesson. thank you so much

[@laker256]

You simplified everything. Thank you

[@Pasquala-u9q]

Thank you sir for your explanation is make sense

[@realsydney_za]

Thank you so much. You are always helpful to my studies. I have one question, in my textbook under discounting factors they always add 1 to the percent given. (i.e rate of return is 20%) but on the table, they show 1.20. could you please enlighten me

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[@vishalsharma-zz2xm]

very helpful. thank you so much

[@lukhanyomtshingana1962]

Very informative

[@ninsiimamackiline2123]

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[@gxfr795]

This helped a lot, i prefer it in table format, thanks very much

[@Counttuts]

You are welcome.

[@shaniajonas2460]

I did this example but my final answer was 963 instead of 962. Is it because I'm not using a financial calculator? I understand the work much better now, thank you.

[@korlonlonloncorodambadanjo9094]

Thank you so much 😊 this video really helps me.

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[@Counttuts]

You are most welcome

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Brilliant... excellent tutorial

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Thanks dear,well understood ♥️📌

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Your voice is calming like the voice from SpongeBob ❤

[@MrsKhulz]

Very well put together; Very helpful and easy to understand. Thank you for the assistance.

[@k_pab17]

In a situation where you are comparing two projects eg Project A and B , with both recording positive npv what will be the conclusion

[@rofhiwam2411]

This is really helpful. Thank you!

[@anilpargain1889]

Hi sir, We're given a question in which cash flows for 2 investment options are given and we have to analyse then using NPV. But I'm confused since we don't have discount rate. Neither we are given any rate of return. Only expected cashflows are given that too are different each year.

[@thamaemohapi9147]

Please help out, how do I calculate NPV when the question has "Its cost of debt is 6% while the cost of equity is 18% with a weighted average of 50:50 capital mix of debt and equity." ?

[@vuyisamahlangu8197]

Thank you very much guys, very helpful your methods and way of explanation are easy to follow and understand. Kindly assist me in with an example on NPV and ARR where even cash flows are used. Please

[@Counttuts]

Coming up soon

[@bradleyabraham3614]

what happens to the cash flow if you have an additional investment in year 3 for example

[@learnmathwithprivilege]

Thanks moguy

[@mothepanemakhele9629]

What happens if theres amount for the cash out flow when calculating NPV

[@aczu12345]

I learned a lot and your video really helped me thoroughly understand my lesson.

[@silverfruit58]

what about the questions which are given with 12, 14 percent

[@sachinpk6]

Nicely explained. But why didn't you conclude here with advantage and disadvantage of NPV technique like in AAR and other techniques?

[@is-haqame3625]

Thanks

[@funzaniconstancendlovu9863]

How do you get those percentages?

[@pepeseesyou5964]

thank u so much

[@josephinesmith6256]

I need urgent class on IRR, investment strategy, financing policy, and financial planning, value creation analysis through balance sheet analysis. Please, asap; I have exams next week

[@mugabodaniel1660]

good

[@zindela210]

Thank you so much

[@pallavisalunkhe9049]

what is the use of data of scrap value?

[@studyingwhileinyourprime4691]

And what if you own the machine and would like to sell it in the 5th year for that amount?

[@inolofatsengmodise1060]

Thank you

[@yongamamqeke6538]

Yhoooo thank so much

[@Daisy-ue9vk]

How do you find answers without the table

[@dekageorge]

Where did you get this interest factors from?

[@JosephSatoh-em1sl]

😂🎉am just waiting for time to write management accounting in 12hrs time

[@AkEstherJesse]

suppose that a firm is considering an investment project which involves a net cash outlay of $450,000 and that it is expected to generate an annual net cashflow of $150,000 for 7 years. the projects target debt ratio 50%. the floatation costs of debt and share issues are estimated at 10% of the amount raised. to finance the project, the firm will issue 7 years 15% debentures of $250,000 at par ($100 face value), and new shares of $250,000. the issue price of a share is $20 and the expected dividend per share next year is 50%. what is the NPV of the project

[@farhanrehman8378]

Why did you use the "normal present value" table the " present value annuity" table? I think u would have used present value annuity table.

[@farjanaakter3299]

Where is the advantage and disadvantage? Can you upload this?

[@makhosinyawo9639]

Do you do one on one tutorials?

[@Counttuts]

Good day, yes we do. You can book a session with us via our email [e-mail]

[@Nay34933]

I got " -963" and not "-962..." I'm confused,how did you get to that answer?

[@st_magnetar4171]

i dont think the figures of the discounted future values are absolutley accurate, or else maybe mine are not accurate. my answer for NPV of 13000 in year one, was 12.149 after using the method of Future Cash flow / (1 + 0.7) to the power of 1 = 12,149

[@fanashaa3130]

💯👏

[@dirane55]

i appreciate

[@STEEZEFX]

if you have a figure like this (100000) hundred thousand in bracket how do you go about it

[@euniceninson3045]

Let me use your question as an examples. Assuming you added the company’s required rate of return is 7% and payback period is 3 years. How would you calculate it? Will you do your calculations from year one to 3 or you will calculate all the years? Kindly help me my exams is in few days.

[@mataneraseona2441]

WOW

[@micaela-bethnorman1055]

it is -963!

[@mwendadimba9487]

yes,that what i found asa well. -963

[@scorpian5311]

is it not 963?

[@Nomthee.n]

The answer there was supposed to be =-963

[@wilhelminaruben8312]

I need help.

[@Counttuts]

We offer one-on-one lessons at reasonable rates, you can book lessons by emailing us at [e-mail]

[@joanmwende7301]

You haven't factored in the scrap value

[@joanmwende7301]

In fact after adding the scrap value,it's R2 602 which is positive and it's worth investing in the machine purchase

[@luqmanhafidh9966]

Man the total value is -R963

[@sphumelelengcamu1984]

Hey Mr I have a question that I and many in my Durban University of technology group would like to ask you, could you please share your email address. Out lecturer is teaching this thing in a different way that I disagree with

[@Counttuts]

Good day, you can email us on [e-mail]

[@trendingkenya4068]

Each lecture has is own approach,so long as the answer is the same .I don't see any difference my dear.

[@muriuwangari3030]

Thanks 🙏

[@cintaba1]

Thanks so much

[@diz533]

Thank you

[@dechenwangmo1070]

Thank you