Net Present Value (NPV)

This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example.
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[@TraumaER]

*Just here studying for a Master's Degree course because my actual teacher spent 3 hours confusing the class. I now understand in under 10 minutes.* _Technology #1!_

[@Edspira]

I'm glad you understood the video, but I'm sorry that your prof sucked!

[@TraumaER]

@@Edspira haha thanks! Funny reply!

[@MrSiloterio]

Same! Also preparing for our final comprehensive exam in Graduate School and Edspira is a life-saver! Not just in finance but also in my econ class!

[@SarcasmSage]

same here.. our Professor posted this video to be learned rather than teaching himself..

[@DinnoPizza]

im living this right now

[@richardgordon]

Brilliantly explained. You make me feel a lot smarter than I actually am.

[@leroydywili6798]

🤣🤣 word

[@ranycans7400]

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[@esraafawzi2383]

Same😂

[@ashleysanfino8221]

How come eight people have tried to explain this concept to me and you're the first to do so in a simple way that makes sense? Thank you for this, you're saving my ass in managerial accounting right now.

[@lilmoesk899]

You're definitely a skilled teacher. Your MBA students should feel lucky to have you (my accounting professor is, unfortunately, horrible at explaining anything). I'm jealous of them. Visited your website and just wanted to say thank you for doing what you do. The world needs more people like you.

[@mohammadshoaib9521]

legit better than my University class, learned this concept in 7 mins... and didnt learned it there even after 3 whole hours

[@rawadrizk999]

What uni do you attend?

[@PHOEBEE69]

me freaking too. omg, was literally bout to drop out lmao

[@Cheesecake99YearsAgo]

We should avoid your university 😂

[@VGNAclan]

You managed to take something I couldn't understand after going to multiple classes, and made it very easy to understand in just 9 min and 25 sec. Thank You so much!

[@Edspira]

No problem. You deserve all the respect for not giving up!!

[@mohammedanbool9688]

I am an IB student from Yemen. I wanna say that you really deserve a huge thanks for your efforts. Thanks a lot. ❤

[@dianeharpal4811]

I wish KZbin"s algorithms lead me here when I started college, you have been so much help.

[@RicoSuave678]

The best explanation of NPV. Thank you - concise, well explained and presented in a sequential manner that simply put all the pieces together to understand the concept of NPV.

[@Edspira]

+Joseph Perez Thank you for the kind words. I'm happy to hear you've mastered the concept!

[@reginakuai7307]

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[@randaalisawi4655]

Thank you soooo much for this very simple explanation, I have an exam tomorrow and I was finding it very confusing. Much appreciated!

[@Edspira]

+Randa Alisawi No problem! I hope you did great on your exam!!

[@praxisvictim5348]

very nice. how much

[@darellteague3845]

Dude, after hours of trying to read tables, these formulas are more my forte. Why thank you, Edspira.

[@chriscrenshaw3230]

Love this guy, been helping me with my MBA for the past year or so now.

[@joannas22]

I guess we are all here trying to find out how to pass successfully our Corporate Finance exam :D

[@joannas22]

Oooh, and good luck to everyone who is struggling with it!

[@4dwyn]

You betcha :)

[@karish8622]

YEs! :'(

[@Zeioth]

Some people have an actual business, you know.

[@Kashif.naseer]

Dzhoanna Starkova indeed

[@CristianGarcia-kc9zd]

Great videos... Simple and to the point.... Great work I learned more from your videos than my professor trying to explain it in 4hrs

[@copperntod17]

THANK YOU SO VERY MUCH FOR ALL THE WONDERFUL VIDEOS YOU HAVE SO KINDLY PROVIDED. I AM TAKING MY FIRST MBA PROGRAM CLASS (ACCTG AND FINANCE FOR MANAGERS) AND ALL YOUR VIDEOS HAVE HELPED ME IMMENSELY. I LISTEN TO THEM AT WORK ALL DAY AND BY THE TIME I READ THE ASSIGNED MATERIAL, I AM VERY FAMILIAR WITH IT, AND I OWE MANY THANKS TO YOU... THANK YOU, THANK YOU!!! :D

[@Edspira]

Thanks so much for the kind words. Best of luck in your MBA class!

[@abee207]

Only genius can explan it in SIMPLE way . Thank you !

[@AstriDBZ]

Thank you so much for offering these calculations for free on KZbin, they are highly appreciated! :)

[@chosen167]

If only my MBA teacher explained this I wouldn't have to resort to spending $0 learning this on KZbin. You have added value to my life thanks.

[@Edspira]

Happy to help!

[@barbaramatoscarvalho8467]

I've already tried to understand it with multiple books and other videos and I never understood it. Now within minutes I was so clear! Thank you so much for this amazing video!

[@stefaniac2095]

it was so easy, and all the books make it so complicated. thank you for making it sound like a piece of cake.

[@Edspira]

Why do so many textbook authors do that... I'll never understand! I'm glad you were able to learn the concept and I hope you do great in your courses! Best wishes

[@gianneyeung5147]

This is so much easier to understand the 3 hour lecture at the business school I'm attending.

[@Edspira]

That sounds painful, ouch!

[@ayanas9892]

Thank you so much! This is the first video with an explanation I've understood, I'm grateful

[@InSterquiliniisInvenitur]

This was very informative and easy to understand! I like how brief the lesson is too. I wish more people could explain with this clarity. Keep it up!

[@aldisilvia]

+Alex Creznic 6% is the discount rate he said at the end of the video

[@ctonew6155]

This was better than watching ITunes U's MIT Finance course. I like the way you explained why NPV >0 and its importance.

[@Edspira]

Awesome. I'm glad this video helped you! I have 6 more videos on financial decision making related to corporate finance. You can check them out here: edspira.com/lessons/financial-decision-making Thanks for watching!

[@88spaces]

You made the concept of NPV crystal clear. Thank you.

[@ConnorWilkins]

This guy has helped me more than my professor for my MBA.

[@Edspira]

Happy to help my friend!

[@TheLadymaryam]

thank you so much, I do not know why our professor is not able to explain like this.

[@Edspira]

Happy to help!

[@robinj.792]

Sir, thank you for for taking time to record and share your videos. I actually understand! Again, sincere gratitude.

[@Edspira]

No problem. Thanks for watching!

[@lenalarina59]

I remember a year ago, I was watching your channels videos and one of examples that was quite funny was coming to my mind from time to time and would make me smile, and today I came across your channel again and that example about clown came to my mind, it made me wonder who is the person behind the videos with this great sense of humour and extremely exquisite explaining abilities. I just googled it , came across your website and your childhood story. It is really inspiring story for many teens and even complete adults like myself. Thank you for this channel and videos, best wishes 😘

[@ramazonpine4151]

Thank you very much. I got the concept of NPV just under 10 minutes, which is absolutely decent. Its good to know that this type of content is free of charge:)

[@nomnom6136]

u make complicated stuff soo simple,n only few can do dat.....tnx a lot

[@MysticalDreamerr]

OMG, thank you soooo much!!! Your explanation is way clearer than any other videos I've watched. You're my lifesaver!😭🙏

[@matthewohare8620]

You are a legend my friend. Hours lost on lectures and this explained in 9 mins

[@Edspira]

Awesome, thanks for watching!

[@InfectedoOG]

Damn, this is actually surprisingly easy. These damn finance formulas make everything look so complicated

[@Edspira]

Agreed!

[@ProcrastinationMaster]

I pay £9000 to watch KZbin videos. But videos like this helps ALOT so thank you!

[@BanCoP3Q3VN]

Thank you for a short video that well explains what is NPV and why we need to use them.

[@Edspira]

No problem!

[@ariah5093]

That last part you said about making more than what we could have made if we invested It at 6% made so much sense! Thank you! God bless you, brother!

[@Edspira]

I'm so happy to hear that it clicked! Thank you for the kind words, and good luck with your course!

[@atheekfareed4691]

Excellent explanation, using non-standard words like discounting, discount rate, opportunity to invest somewhere else and so on. This makes is easier to relate to the concept. Good job!

[@hopemsoffe702]

I am prepping for my ACCA-SBL exam on March 7, 2023. We usually have a FINANCIAL PROJECTIONS section which requires us to analyze a proposed investment. I am grateful for this video. Brief and easy to understand. Thank you, Sir.

[@theEmmasound]

Thank you so much. Thank you for actually explaining the conceptual framework for why this is important, when we do it and why we do it. It not only makes me understand the calculations better, but makes it all the more interesting. You are 10000x better than my current MBA teacher :).

[@Edspira]

Thank you so much for the encouragement!

[@MrCEO-jw1vm]

couldn't help but subscribe after stumbling on this. I'm a college student trying to lear about finance, and you do a great job explaining and motivating this topic with the examples effectively conveying the message. I like the interpretation too!

[@edleneferreira158]

Very good explanation. I am not from a financial background and I need to learn this concept and calculation for my Project Management course. Thank you for explaining down to the details, so even people like me (with little mathematical skills) could understand.

[@Edspira]

No problem my friend 😀

[@arunnathsr7680]

Explained well & Much better than my professors

[@Edspira]

Thank you!

[@haileysailor]

i wish youtube was a part of my resource of additional education while i was in school. but luckily I am studying for a project certification, and this came in handy too!

[@devllb83]

tons of thanks for such a simplified explanation....

[@norma-jeabarsh5266]

Thanks. You make things so easy to understand. I have been out of school a long time, and forgot these concepts.

[@Edspira]

+Norma-Jea Barsh No problem! It's funny how quickly we forget concepts if we don't use them in our daily lives... I studied a lot my initial years of college, but now the material seems like ancient history :)

[@ryancresswell4398]

Excellent explanation of NPV. Thank you!

[@akramayoub2536]

excellent and very simple explanation! Thx

[@brandonbandstra226]

You are such a clear teacher! Thank you SO MUCH!

[@Edspira]

Glad you think so!

[@austinmatt3688]

Excellent video, great simplification of terminology and spot on example!

[@JoeH..]

Youre a legend. Ill have to share this with my accounting class. Ive not even started learning this in class yet i worked this out on an example and answer sheet aligns with the method.

[@likquidsteel]

Great video. Great effective use of explaining concepts and employing familiar proper terms and equations, the education of which remained dormant from my undergraduate finance days until now. Thank you.

[@elijahmoss9114]

Great explanation, I understood now better than my lecturer's...I'm studying Financial Management

[@anhnguyentram9888]

thank you so muchhhhhhhh!! I have tried to understand NPV but cannot until finding your video!! your video is better at explaining NPV than the Cambridge textbook 😭

[@Edspira]

I'm so glad you found the video helpful!

[@stansidorov]

Brilliant explanation. I think your video should be in investopedia. Thanks a lot.

[@saisanthoshsomasundaram5604]

You have explained it in a simple manner. Thanks.

[@Edspira]

Awesome. Thanks for watching!

[@AM-sr8bu]

thanks, i have a corporate finance exam today, and this really helps a lot

[@Edspira]

No problem- I hope you did great on your exam!

[@olivejess8957]

Thanks for laying down such a perfect explanation on this topic, I find it very helpful because lately i have been trying to understand the value of cash ranging with time difference especially now i get to invest in the stock market.

[@charleskinseth9645]

Wow, You invest in the stock market? You must have known so much about the stock market because knowing little is dangerous when it comes to trading stocks

[@ailemteo2362]

The stock market profit those with vast knowledge on how it works

[@stacybob9453]

After reading a few books and also watching some youtube videos i thought i was very ready to invest all by myself. I ended up losing my capitals

[@olivejess8957]

@@stacybob9453 hahaha you got so unlucky i've been in those shoes and i know how losing money to the market hurts

[@olivejess8957]

Real Life. It’s been profitable especially since a pro trader helps run my account.

[@arwaromaizan2281]

I have a finance exam in two days and I know nothing about finance but its actually fun thank you for explaining this with exams

[@aon2152]

Hope it went well and you passed!!

[@jjholmes8530]

My search ends here, thank you❤️💯. I just wanted to know what does NPV > 0 means and everybody was busy explaining the formula which I can google.

[@Weightingtablesafter]

God bless your beautiful soul.

[@fotogrfik]

30 pages of a text book and 2 hours of a lecture and it clicks for me now after this 9.5 minute video.

[@Edspira]

😀

[@appalashettymounika1599]

Thank you, and simplified the complex problem to simple explanation !

[@Edspira]

Thank you! I love your name!!

[@rhinojosa055]

your lessons are excellent sir. main reason i got through my beginning MBA classes

[@robertosandoval6335]

Wish all teachers were this good.

[@KOnneh1234]

You are such a great teacher, just had to stop the video to tell you.

[@regisndongo5723]

Very clear and well explained. Thank you very much. I enjoyed the video.

[@Edspira]

+Regis Ndongo Thank you!

[@NITROUSOXIDE921]

Exam is tomorrow and this video helped me so much. really thank you!!

[@Edspira]

Thanks. I wish you the best on your exam!

[@rent1762]

Thanks, this is one of the better videos explaining NPV.

[@Edspira]

Thank you for the comment. Take Care!

[@Hershekiss38]

Your videos are easy to follow. I appreciate you a great deal!

[@Edspira]

Thank you my friend!

[@MusaKhan-wn7nl]

I have a question... As we Know that at 6% NPV is acceptibale Then can we Increase or Decrease that Rate ???

[@illiterut]

really great explanation - thanks for not rushing and for explaining thoroughly

[@Edspira]

Sure thing!

[@X_EGY]

BRILLIANT, THANK YOU SO MUCH, BEST EXPLANATION EVER.

[@floralscraft]

After 10 year, ifund this valuable 😮the real reason i like KZbin 😊

[@weikeduo2236]

Thanks for your work! I`m from Ukraine and my professor were killed in the war. Our class now studying by ourselves and yours videos helps a lot!

[@mohammadmohiuddin1227]

THANK YOU FOR THE HELP

[@PayongKaibigan]

Wow very nice explanation 🙏

[@Edspira]

Thank you!

[@ahmedhussam9259]

Thank you very much I've exam after 2 hours and you help me very much !!

[@99lomari]

Excellent Sir, how simple and easy way you adopted to transfer this valuable knowledge, really appreciate a lot,

[@Edspira]

No problem!

[@salmahazem5850]

Thank you so much you explained it so easily, I can't believe that this is the same topic that my professor explained!!!!

[@Edspira]

No problem, I'm glad you understand the topic now!

[@tomw1508]

In 2019 and this video is still insanely helpful.

[@dave9343]

Excellent, as usual. You have the knowledge and you know just how to impart it for anyone to understand.

[@bloodymary9557]

Thank you so much. This area always bugged me. But you explained it very well

[@rudynavor5613]

Thank you for the explanation of what the NPV means. I got the formula but didn't grasp the meaning of the outcome. Excellent explanation.

[@Edspira]

Thank you!

[@r42221]

Thank you, thank you! This was such a great explanation and it sunk in the first time. Until now, I was fuzzy on the concept of NPV because I had read so many bad explanations in the past. Great teacher!

[@zippy2u]

Thanks for an excellent and thoroughly understandable explanation of the process.

[@mesmrizing3656]

Thank you so much for the simple explanation, currently writing an assignment about economic feasibility study.

[@Edspira]

Good luck with your assignment!

[@bandiilem201]

6 years ago, but still useful. Thank you✔️✔️

[@Chostax]

coming up huge again for me! thanks so much

[@brettalexander7097]

Thank you for making this video. Finally starting to make sense to me now 💡

[@Edspira]

Glad it was helpful!

[@pratyaksharneja2082]

Never gets old. Fantastic and concise explanation

[@Edspira]

Thank you!

[@emilie3907]

Thank you for your existence

[@Edspira]

😀

[@AnjanaPi123]

Thank u so much. explained well. simple & easy to understand.

[@georgebrooking3820]

Wait, this is a great explanation!

[@Edspira]

Thank you!

[@sable2you7225]

Thank you so much for doing what you do. I have been struggling thinking I'm too old for this...lol. My instructor will not teach. She just says watch the video.

[@sharminmanocha3938]

Thank you for your video, it provided me with better clarity of the NPV concept, cheers!

[@Edspira]

You're very welcome!

[@anasschentouf6905]

You saved my useless day. THANK YOU.

[@Edspira]

Awesome! Glad this was helpful.

[@sanfran224]

Thanks man. Save me a lot of time

[@rachaelfoster7649]

Thank you so much for helping me to make sense of this topic at last!!!!

[@Edspira]

No problem!

[@mayoe1430]

Good explanation. Thanks for this content