How to Calculate Net Present Value, Annuity, & Perpetuity

Рет қаралды 79,300

Күн бұрын

How to Calculate Net Present Value, Annuity & Perpetuity | Corporate Finance Institute
Enroll in our full course and earn a certificate to upgrade your career: courses.corporatefinanceinstit...
We explore the concept of the “time value of money”, how to calculate net present values and future values using compounding and discounting techniques. Learn how the present values of annuities, perpetuities, and growing perpetuities can be calculated using NPV and DCF.
-- FREE COURSES & CERTIFICATES --
Enroll in our FREE online courses and earn industry-recognized certificates to advance your career:
► Introduction to Corporate Finance: loom.ly/us5oJEw
► Excel Fundamentals: loom.ly/4KnYciU
► Accounting Fundamentals: loom.ly/xHJgJO4
► Reading Financial Statements: loom.ly/2wrcPw8
► Fixed Income Fundamentals: loom.ly/DZdjDA0
-- ABOUT CORPORATE FINANCE INSTITUTE --
CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world.
By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst.
Explore CFI courses: courses.corporatefinanceinsti...
-- JOIN US ON SOCIAL MEDIA --
LinkedIn: / corporate-finance-inst...
Facebook: / corporatefinanceinstit...
Instagram: / corporatefinanceinstitute

Пікірлер: 17

@AbdulQadir-gf5nv 2 жыл бұрын

Thank you so much for excellent video to summarise basic finance concepts 👍🏼

@samiulislam2259 4 жыл бұрын

Very instructive!

@cakuuleyare7730 Жыл бұрын

May God bless you. Really this tutorial helped to understand and differentiate those three concepts.

@tonyj4271 5 жыл бұрын

thanks

@Rodgers254_ Жыл бұрын

Wow, this was a good foundation for us undertaking finance.

@rajaramk8203 5 жыл бұрын

Can you please share the link for the module 2

@vincentezw9241 2 жыл бұрын

Please Sir share the link and the lecture notes

@isoamazing2013 5 жыл бұрын

Hey, in slide 7 of this module, it says that $100 today is equivalent to $133.10 in three years. In the previous slide it said there are other factors which demonstrate the different values of money over time, with them being risk and inflation. Is this risk and inflation factored into the $133.10 in three years? If inflation were 1.5%, wouldn't that $133.10 still be less than $100 today, also taking into consideration of risk?

@CFI_Official 5 жыл бұрын

Yes, risk and inflation are factored into the $133.10 in three years. When calculating the PV, the 10% discount rate used in the formula is the required rate of return the investor is expecting to receive for the investment. This discount rate takes into account the risk associated with the investment as well as the expected inflation, etc.

@nobinkumarpradhan5757 2 жыл бұрын

@@CFI_Official , Basically, compound rate of interest has been applied causing $100 today to turn into $133.10.Had it been simple interest rate, the value of the current $100 will be $130 in 3 years' time.

@sandunikanirmanidezoysa9307 2 жыл бұрын

What would be the present value of perpetuity cash flows receiving monthly at an annual discount rate ? Do we have to multiply the monthly cash flow by 12?

@CFI_Official 2 жыл бұрын

Hi! We do not provide technical support. However, please do check out our courses here to learn more: rebrand.ly/b6ae09 Let us know if you have any questions! - Maria