NPV and IRR explained

Рет қаралды 723,047

5 жыл бұрын

Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value explained (including present value and future value): • Net Present Value (NPV...
Internal Rate of Return explained: • Internal Rate of Retur...
NPV IRR Payback period scenarios: • NPV IRR Payback period...
Time value of money • Time value of money ex...
How to calculate #NPV in Excel • NPV in Excel
How to calculate IRR in Excel • IRR in Excel
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: KZfaq videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!

Пікірлер: 617

@TheFinanceStoryteller 4 жыл бұрын

Lots of exciting and helpful new videos coming up! Be sure to click the like button, subscribe and turn on notifications to ensure you don't miss anything. Now that you learned how the NPV and IRR concepts work, your next step is to understand the impact of various scenarios on the NPV and IRR outcomes: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@j.revathireva4909 Жыл бұрын

😊

@ibsamohamed740 4 жыл бұрын

I can't thank you enough. I really can't. You explained to me 2 weeks worth of materials in less than 10. God bless you

@TheFinanceStoryteller 4 жыл бұрын

So happy to hear that, Ibsa Mohamed! That is wonderful. Thank you for commenting. I think you should watch the NPV IRR payback scenario video next to understand this even better :-) kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@nickyanna3571 4 жыл бұрын

This single video has just taught me a full term of university coursework... Somebody remind me why I'm paying £9k a year

@TheFinanceStoryteller 4 жыл бұрын

@@nickyanna3571 Thank you! That is both a hilarious as well as saddening statement on the experiences of university education. Get your certificate and get out of there into the real world! ;-)

@konstancyja82 5 жыл бұрын

Finally, explained in a way thats easy to understand! I suggest all PMP students to watch it!

@goddessalumni2355 3 жыл бұрын

🤦🏽‍♀️🥰🤘🏽

@AndresSanabriaMusic 3 жыл бұрын

A semester in less than 10 minutes

@TheFinanceStoryteller 3 жыл бұрын

Wow, thank you, that's a great compliment. Here's the link to the playlist with related concepts like WACC, crossover rate, etc kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@Earth_By_Board 2 жыл бұрын

I’m thinking of getting into accounting. Is this exaggerated? 😂

@lilnine3293 2 жыл бұрын

@@Earth_By_Board yeah its very exaggerated, its more like a week or 2

@lsansco3012 2 жыл бұрын

@@Earth_By_Board yes. It’s covered in one lesson for like 20 minutes.

@alexnumssen2098 2 жыл бұрын

Not really

@rauljimenez5485 5 жыл бұрын

I am loving your short and concise videos. They cover the key concepts and make them very clear!!

@TheFinanceStoryteller 5 жыл бұрын

Thank you for the kind words, Raul! Hope there are more videos on the Finance Storyteller channel that are useful to you. Please spread the word to friends and colleagues! :-)

@abidullahkhamosh2099 4 жыл бұрын

I did not understand where does this 35, 117 en (46) come from? how has he this calculated?

@endangeredspecies5005 4 жыл бұрын

@@abidullahkhamosh2099 35 came from calculating the future discounted cash flows of 333+278+231+193 which is equal to 1035 and subtracting this 1035 from the initial investment of 1000 and you got this 35. i hope this will help you.

@MundaneMuser 4 жыл бұрын

My brain hurts.

@vikram_sekar 5 жыл бұрын

Excellent. The perfect video which cleared all my queries on NPV and IRR and provided a base on these concepts. Covered what is it and how to calculate it. Thanks for posting this awesome video.

@TheFinanceStoryteller 5 жыл бұрын

Thank you, thank you, thank you for the very kind words! Happy you enjoyed it. Please tell all your friends and colleagues about it. ;-) Here's the link to two "bonus videos" on how to calculate NPV and IRR in Excel: NPV kzfaq.info/get/bejne/oLePgaeCl9e6hnU.html IRR kzfaq.info/get/bejne/gpZ6dspmub7ZlJc.html

@cliftonaurelius3060 4 жыл бұрын

I can't.thank you more. I was in class and completely clueless what the lecturer was teaching. As a slower learner, you're really a blessing to us. Thank you so so so much ❤️

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Clifton! I have a few more NPV and IRR examples for you in this video: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html and recently finished a video on the related topic WACC kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@abidullahkhamosh2099 4 жыл бұрын

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@cliftonaurelius3060 4 жыл бұрын

@@TheFinanceStoryteller thank you! I needed the WACC video and you made it. So timely.

@TheFinanceStoryteller 4 жыл бұрын

@@cliftonaurelius3060 You're welcome, Clifton! Glad to hear that.

@TheFinanceStoryteller 4 жыл бұрын

@@abidullahkhamosh2099 Hello Abidullah! Let me walk you through the formula to arrive at $117 in project B, then you can replicate the same calculation for the other projects A and C. The undiscounted cash flow in project B are Year0 ($1000) Year1 $600 Year2 $500 Year3 $300 Year4 $200. The discounted cash flows for those are are ($1000) + $600/1.2 + $500/1.44 + $300/1.728 + $200/2.0736. If that is still confusing, then watch the related video specifically on NPV: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@user-ps8ln5ke2f 3 жыл бұрын

Man. you are a great teacher! Many folks make it hard to understand using jargons and stuff. never understood 100% but now I have nailed it. Thanks so much!

@TheFinanceStoryteller 3 жыл бұрын

Thanks for the kind words! Very happy to hear that! I have many more related videos on WACC, payback period, etcetera that could be helpful for you: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html Please subscribe, and spread the word to fellow students!

@Hoshi_Poshi 3 жыл бұрын

I'm italian and I was struggling with this for a course in english, thank you this video is very easy to understand!!!

@TheFinanceStoryteller 3 жыл бұрын

Ciao! Very happy to hear that. Greetings from the Netherlands!

@starm5556 3 жыл бұрын

@@TheFinanceStoryteller Hey. Well explained. How did you get the cash inflows for each? How do you determine the value of each project and which to choose, besides comparing npv. Does a higher or lower irr rate matter ? As well as payback period ? Would you choose an early payback period project that offers a lower amount with a wacc of 12.5% payback of 1,5 years and net present value of 850 000 with irr of 11% or.... a project with a wacc of 12.5% at a period of 2.7 years and Npv of 1500 291 with irr of 19.26% and why ?

@lukasrohler2074 3 жыл бұрын

I’m American and I was struggling as well, I’m convinced finance is it’s own language and culture haha thanks for making this video!

@jlee8 2 жыл бұрын

I wish I had access to your videos during University. This is one of the best and clear explanations of NVP and IRR. Thank you

@TheFinanceStoryteller 2 жыл бұрын

Wow, thank you, Jenny! Please spread the word. Here is the link to my playlist with more capital budgeting content: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@Dorotheen 4 жыл бұрын

Thank you so much! I was having a hard time to understand the topic, but you were amazing in clarifying it.

@TheFinanceStoryteller 4 жыл бұрын

You're welcome! Please subscribe to the channel, I have related videos on topics like WACC and payback period as well.

@robertbotta6536 4 жыл бұрын

Without a doubt the best explanation of npv and irr on KZfaq. Thank you.

@TheFinanceStoryteller 4 жыл бұрын

Thank you very much, Robert! Wonderful to hear that.

@loveelykiim1001 2 ай бұрын

currently reviewing for my cma exam and i kind of struggling with this topic but you explained it in just 6 minutes and i can't thank you enough! you are a lifesaver!

@TheFinanceStoryteller 2 ай бұрын

Happy to help! I have a playlist for you with related topics like payback, discounted payback, WACC, etcetera: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB

@loveelykiim1001 2 ай бұрын

@@TheFinanceStoryteller thank u so much!

@TheFinanceStoryteller 2 ай бұрын

@@loveelykiim1001 Please share with your fellow students!

@themotobanditshow 5 жыл бұрын

Thank you this is so simple for me to understand. Currently in my second year completing financial risk. Thanks!

@TheFinanceStoryteller 5 жыл бұрын

Great to hear. Please spread the word! :-)

@mooniebo2752 5 жыл бұрын

easiest explanation I've seen. thank you! you've helped me prepare for my exam!

@TheFinanceStoryteller 5 жыл бұрын

Thank you for commenting! Wishing you all the best with your exam. Maybe the related video on WACC vs IRR can help you as well kzfaq.info/get/bejne/kNt4ktRmyNilh5s.html

@bonganimanini7748 3 жыл бұрын

Best NPV and IRR explanation I've ever heard. Thank you

@TheFinanceStoryteller 3 жыл бұрын

Happy to hear that, Bongani! I have videos on related capital budgeting techniques for you in this playlist: kzfaq.info/get/bejne/kNt4ktRmyNilh5s.html

@johannakenwood3359 2 жыл бұрын

Omg thank you so much!! A lecture and multiple videos later, your video finally explained it thoroughly in under 4 mins. 3 years and a pandemic later your videos still teaching!!

@TheFinanceStoryteller 2 жыл бұрын

Great to hear, Johanna! Yes, this video has been very successful, and I am happy that so many people found it useful to understand capital budgeting concepts. Here's the playlist with related terminology on WACC etcetera kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@johannakenwood3359 2 жыл бұрын

@@TheFinanceStoryteller thank you I will be needing it! Just started supply chain management last week. Thanks so much!!!

@TheFinanceStoryteller 2 жыл бұрын

@@johannakenwood3359 You have come to the right place! Here are my thoughts on inventory management: kzfaq.info/get/bejne/esCYe7aDmcWdcmg.html

@kaustubhnarkar9820 3 жыл бұрын

my dear friend this is one of the best ways you have explained these concepts , they don't explain this as good in universities and professional finance courses really kudos to you mate .

@TheFinanceStoryteller 3 жыл бұрын

Thank you so much for the kind words, Kaustubh! I approach each and every video from the real world perspective. Please subscribe to the channel, and take a look at the NPV IRR WACC playlist for more related videos: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@omarzeyad1382 3 жыл бұрын

thank you so much for this video, I spent 3 Hr trying to understand this on the MBA module material, but now its cristal clear after seeing this video

@TheFinanceStoryteller 3 жыл бұрын

You're welcome! Great to hear that, Omar. I have videos for you on related topics like WACC as well kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html Please spread the word to fellow students!

@konstancyja82 4 жыл бұрын

Just used this video for my pmp exam learning. Valueable information in just few minutes.... Thank you

@TheFinanceStoryteller 4 жыл бұрын

Thanks! Great to hear that. I think you will enjoy the follow-up video on NPV IRR payback scenarios as well, for a deeper understanding: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@nokuzolaholomisa6223 5 жыл бұрын

Thank you so much, I'm writing tomorrow and I was just lost, everything is clear now. Thank you again x

@TheFinanceStoryteller 5 жыл бұрын

You're welcome! :-) My follow-up video on WACC vs IRR might also be helpful for you: kzfaq.info/get/bejne/kNt4ktRmyNilh5s.html

@rso143 4 жыл бұрын

I can't thank you enough about this video, the concept of NPV which I heard yesterday which the professor was not able to explain and left me confused are now solved for just six minute video. although your calculation of IRR is not clear but will use Excel as I know basics of Excel. thank you so much

@TheFinanceStoryteller 4 жыл бұрын

Thank you for the compliments, Rayso! Yes, I agree I could have spent more time on IRR in this video. I made follow-up videos to go deeper into IRR, compiled in this playlist: kzfaq.info/get/bejne/l7loi6uLm7SxY4k.html

@alihussainkurbanhussainbhi7748 Жыл бұрын

I really can't thank you enough. I wish I had a teacher like you. God bless you. Amen

@TheFinanceStoryteller Жыл бұрын

Happy to help! I can be your virtual teacher on KZfaq! Here is the link to a playlist with related videos like WACC: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@ashwinudapikar3290 5 жыл бұрын

Very well explained! Thank you so much for the video!

@TheFinanceStoryteller 5 жыл бұрын

Great to hear that, Ashwin! Thank you for watching, and welcome to the channel. :-)

@OsaroOyegun 5 жыл бұрын

Another concise and well explained video. Thank you!

@TheFinanceStoryteller 5 жыл бұрын

Thank you! Happy to hear you enjoyed it.

@zennmaiaguerrero8348 3 жыл бұрын

The way how we solve it in business class way back in uni was a shortcut so after months, it was already forgoten. Thank you for explaning the basis of it. Def understand it now. 😊

@TheFinanceStoryteller 3 жыл бұрын

Glad it helped! Here are some more examples to really "get" the deeper ideas behind the calculations kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@ericbertoldo1056 4 жыл бұрын

I appreciate your work on these videos and making it easier for others to understand. On the things I didn’t understand you answered those who had questions below. Great work!

@TheFinanceStoryteller 4 жыл бұрын

Wonderful to hear that, Eric! Thank you for watching and commenting. The questions from viewers indeed helped to clarify some points. I have made a video on NPV and IRR scenarios as a follow-up: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@nileshrathod3153 4 жыл бұрын

Really explained well. I got in the first attempt. Before watching this video, I watched other videos, but I couldn't understand. Thank you for your efforts!!

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Nilesh! Very happy to hear that. I think you will like the related video on NPV and IRR scenarios as well: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@abidullahkhamosh2099 4 жыл бұрын

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@abusufian8667 Жыл бұрын

This video is very crucial to understand the core concept of AFM....thank you!

@TheFinanceStoryteller Жыл бұрын

Thank you very much for the kind words! Related concepts like WACC are discussed in this playlist: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@jamesperry3837 4 жыл бұрын

_Your videos r_ *super.* _Concise and to the point of understanding._ *Tysm*

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, James! Thank you for watching and commenting.

@user-zm1dm4il4y 3 жыл бұрын

I don't know why, but I'm kinda addicted to the accent! lol thanks for the useful information! learned a lot!

@TheFinanceStoryteller 3 жыл бұрын

Thanks for watching!

@AAA11546 4 жыл бұрын

Thank you, very clearly explained!!!

@TheFinanceStoryteller 4 жыл бұрын

Thank you for watching and commenting, Tomas! I made a follow-up video last week, playing around with several scenarios of investment and benefits. Hope you like that one as well! kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@rummanamarzia1288 4 жыл бұрын

Thank u so much sir.. Understood many things what didn’t in class....

@TheFinanceStoryteller 4 жыл бұрын

Thank you, Rummana! Happy to hear that. And well done searching for additional information to expand what was covered in class! I think you will like my NPV/IRR scenarios video as well that covers these concepts with more examples: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@kevinharilal8288 4 жыл бұрын

Dude your videos are really good. I appreciate your assistance tremendously

@TheFinanceStoryteller 4 жыл бұрын

Thank you, Kevin! That's awesome. Working on my next video right now. Happy to help!

@JohnRMTurner 3 жыл бұрын

Great video. Thanks for explaining this with a simple example.

@TheFinanceStoryteller 3 жыл бұрын

Glad it was helpful, John!

@Anna_Australia 2 жыл бұрын

I finally found your video, which helps me a lot!

@TheFinanceStoryteller 2 жыл бұрын

Glad to hear it! More NPV, IRR, payback, WACC and related concepts discussed in this playlist: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@nimidi2568 2 жыл бұрын

Shortest and best way to understand the concept. Thanks

@TheFinanceStoryteller 2 жыл бұрын

Glad it was helpful!

@nikitagorbachevskiy6664 5 жыл бұрын

Perfect! Thank you!

@TheFinanceStoryteller 5 жыл бұрын

You're welcome! I have related videos on payback method and ROI on my channel as well: kzfaq.info/get/bejne/pZqfmZSms7m2mac.html

@kennethromanowski9614 5 жыл бұрын

Excellent presentation. Concise and precise.

@TheFinanceStoryteller 5 жыл бұрын

Thank you very much, Ken! Great to hear that. I think you might also enjoy the related video on ROI versus payback: kzfaq.info/get/bejne/pZqfmZSms7m2mac.html

@janifahbadio6684 3 жыл бұрын

This is a simple and great explanation. Thank you so much :)

@TheFinanceStoryteller 3 жыл бұрын

Glad you liked it, Janifah! Thank you for watching and commenting. My follow-up video on NPV IR payback period scenarios might also be useful for you to watch: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@notevoyadarminombre156 3 жыл бұрын

You deserve a cookie. Thank you very much for this explanation.

@TheFinanceStoryteller 3 жыл бұрын

You're welcome! Opportunity to buy me cookies, a cup of tea, etc. at: kzfaq.info/love/QQJnyU8fALcOqqpyyIN4sgjoin ;-)

@curtiscurry5775 2 ай бұрын

You made it all make sense! Thank you!

@TheFinanceStoryteller 2 ай бұрын

Wonderful to hear that!!! Thank you for watching and commenting. 😊

@TheExceptionalState 4 жыл бұрын

Clear and concise! Thank you!!!

@TheFinanceStoryteller 4 жыл бұрын

Nice to hear that! Thank you, Angus!

@vanderpant2116 4 жыл бұрын

Thank you for a clear concise and easy to understand vid 😁

@TheFinanceStoryteller 4 жыл бұрын

Very happy to hear that! Thank you.

@Jhangerr 5 жыл бұрын

Simple and good explanation. Thank you.

@TheFinanceStoryteller 5 жыл бұрын

You're welcome! :-)

@abheranmoodley4950 2 жыл бұрын

Thank you very much for this video! It is very clear and easy to understand.

@TheFinanceStoryteller 2 жыл бұрын

Glad to hear that, Abheran! Related concepts like WACC, payback period and crossover rate are covered in this playlist: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@todddahlquist7584 4 жыл бұрын

I finally understand the difference - thank you!!

@TheFinanceStoryteller 4 жыл бұрын

Great to hear that, Todd! Happy to help. :-)

@abidullahkhamosh2099 4 жыл бұрын

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@TeachAManToAngle 3 жыл бұрын

You really do a great job explaining this. It had been years since I learned this in business school. Very good refresher

@TheFinanceStoryteller 3 жыл бұрын

Glad it was helpful! I have related videos on payback period, WACC, etc. as well for you as a refresher: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@networkteamtools6528 4 жыл бұрын

you've made complicated things, simple.... well done✊

@TheFinanceStoryteller 4 жыл бұрын

Thanks a lot! 😊 Very happy to hear that!

@trevorspear5970 5 жыл бұрын

Thank you that make sense now!!!

@TheFinanceStoryteller 5 жыл бұрын

Great! Happy to hear that. :-)

@kedard134 Жыл бұрын

Thank you for explaining this is a simple no fuss manner.

@TheFinanceStoryteller Жыл бұрын

Yeah, let's get it done in 5 minutes, if we can, and move on to the next topic. 😎

@daxiaohaha4172 4 жыл бұрын

Thanks, really enlightened video, thumps up!

@TheFinanceStoryteller 4 жыл бұрын

Wow, thank you so much! Happy to hear that.

@MM-zd4md 7 ай бұрын

awesome explanation. Thank you !

@TheFinanceStoryteller 7 ай бұрын

Good to hear that. Glad it was helpful! Videos on related topics like WACC and discounted payback are available in this playlist: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB

@raquelm.w.7974 4 жыл бұрын

Very helpful, thank you!

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Raquel! The sequel to this video might also be useful for you. It covers various scenarios of investment level and benefits: kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@saodatkurmanayeva434 2 жыл бұрын

this helped so much, you're a saviour!

@TheFinanceStoryteller 2 жыл бұрын

Happy to hear that, Saodat! Please spread the word!

@poorvir9416 4 жыл бұрын

Thanks a lot Philip De Vroe!! 😊

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Poorvi Radhakrishnan! :-) Thank you for watching.

@shreeniwas048 5 жыл бұрын

Wow very clearance of concept. You make it in simply.

@TheFinanceStoryteller 5 жыл бұрын

Thank you! Glad you enjoyed it. :-)

@user-xp1rl2wt7y 4 жыл бұрын

Thank you for your easy and clear explanation.

@TheFinanceStoryteller 4 жыл бұрын

You're welcome!!!! Thank you for watching and commenting.

@jngf100 2 жыл бұрын

Very clearly explained - thanks kindly!

@TheFinanceStoryteller 2 жыл бұрын

You're very welcome!

@user-tp5ko7zk6g 9 ай бұрын

The best explanation. Thank you !

@TheFinanceStoryteller 9 ай бұрын

Thank you very much for the compliment. Related topics like WACC and payback period are discussed in this playlist: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB

@elanalistafinanciero Жыл бұрын

Excellent presentation, Thanks so much !!!

@TheFinanceStoryteller Жыл бұрын

You are welcome! 😊 Please spread the word!

@stevenyang9682 3 жыл бұрын

thanks a lot! this is much clearer than lecture!

@TheFinanceStoryteller 3 жыл бұрын

Great to hear that, Steven! Thank you for watching. I also cover related topics like WACC, crossover rate, and profitability index on my channel.

@olayinkaafun5469 3 жыл бұрын

Concise and straight to the point. Thank you.

@TheFinanceStoryteller 3 жыл бұрын

Exactly, Olayinka! :-) Here's the link to related videos on capital budgeting that could be helpful for you as well kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@olayinkaafun5469 3 жыл бұрын

@@TheFinanceStoryteller Thanks alot.

@TheFinanceStoryteller 3 жыл бұрын

@@olayinkaafun5469 You're welcome! Let me know if you think any topics are missing, I am always looking for good topics for new videos.

@Holland1994D 4 жыл бұрын

Hey je bent Nederlands! Thanks, duidelijk uitgelegd, jammer dat ik nu pas je video zie ipv voor mijn tentamen. Gelukkig snap ik het nu wel een stuk beter voor het hertentamen!

@TheFinanceStoryteller 4 жыл бұрын

Jazeker! Welkom! Beter laat dan nooit. ;-) Veel succes met je hertentamen. Hier is de link naar een playlist met alle NPV/IRR gerelateerde termen (ook payback, WACC, etc.): kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@Zwart-in6vc 3 жыл бұрын

@@TheFinanceStoryteller wat is nou precies de relatie tussen de npv en IRR? Deze vraag krijg ik op mijn assessment

@TheFinanceStoryteller 3 жыл бұрын

@@Zwart-in6vc Dat draait om wat je als input neemt, en wat als output. Kort samengevat in het Engels: NPV Step 1) Determine nominal (undiscounted) cash flows , Step 2) Apply discount rate to calculate present values, Step 3) Calculate Net Present Value (NPV) by summing the discounted cash flows. IRR Step 1) Determine nominal (undiscounted) cash flows, Step 2) Set NPV at 0, Step 3) Calculate Internal Rate of Return (IRR) through trial and error, or Excel. Zie ook: kzfaq.info/get/bejne/l7loi6uLm7SxY4k.html

@cortney4soul 2 жыл бұрын

The best breakdown i have seen.

@TheFinanceStoryteller 2 жыл бұрын

Thank you, Cortney! That is wonderful to hear. More capital budgeting videos in this playlist: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@mirnahanger9054 3 жыл бұрын

Thank you, this was a very clear explanation or IRR.

@TheFinanceStoryteller 3 жыл бұрын

You're welcome! Happy to hear that. Related topics in this playlist: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@SharonD88 3 жыл бұрын

Wahoo I want to say thank you, your explanation is the best for me, really easy, 💖🙏thank you. I will check all your content. 👍1,000

@TheFinanceStoryteller 3 жыл бұрын

You're welcome 😊 I have related videos on WACC, profitability index, etc. as well for you: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html

@cheriewong4548 4 жыл бұрын

omg you explained this so well... im so amazed!!!! THANK YOUUUUUUUUUU

@TheFinanceStoryteller 4 жыл бұрын

Happy to help, Cherie!!! :-)

@cheriewong4548 4 жыл бұрын

@@TheFinanceStoryteller Subscribed & liked. keep it up :-)!!!

@TheFinanceStoryteller 4 жыл бұрын

Wonderful. :-) Please tell all your friends!

@meenamenon2219 2 жыл бұрын

so so lucid! THANK YOU

@TheFinanceStoryteller 2 жыл бұрын

Thank you, Meena! Related topics are in this playlist: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@kekelidenutsui6517 2 жыл бұрын

You made it all. Am loving it🔥👌

@TheFinanceStoryteller 2 жыл бұрын

Yes! Thank you!

@endragoth 10 ай бұрын

Thanks a lot for sharing, very educational and useful

@TheFinanceStoryteller 10 ай бұрын

My pleasure! Related concepts like WACC are discussed in this playlist: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB Please spread the word to friends and colleagues.

@leoclarkin5944 5 жыл бұрын

clearly understood, thx

@TheFinanceStoryteller 5 жыл бұрын

Thank you, Leo!

@TheExceptionalState 4 жыл бұрын

Very clear. Thanks!

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Angus! Happy to help. :-)

@rehanrana1 5 жыл бұрын

Thanks so much. helped me alot.

@TheFinanceStoryteller 5 жыл бұрын

Great to hear that. The related video on payback period might also be interesting for you to watch: kzfaq.info/get/bejne/fLCaesxozNmvY3U.html

@benedictgrochla5907 2 жыл бұрын

Pretty good, thank you!!!

@TheFinanceStoryteller 2 жыл бұрын

Happy to hear that, Benedict! Take a look at my capital budgeting playlist for related topics: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html

@tumil8256 4 жыл бұрын

Thank you so much...you’re the best

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Tumi! Welcome to the channel, please subscribe.

@mrtural4977 4 жыл бұрын

Thank you very much for good explanation

@TheFinanceStoryteller 4 жыл бұрын

You're welcome! :-)

@mamtasaravanan985 2 жыл бұрын

Very nicely explained.Love your videos.

@TheFinanceStoryteller 2 жыл бұрын

Thank you so much, Mamta! 🙂 That is nice to hear. Please spread the word!

@jonathanlewin9775 5 жыл бұрын

GREAT VIDEO THX U!

@TheFinanceStoryteller 5 жыл бұрын

You're welcome, Jonathan! Thanks for the feedback. :-)

@PeterTamura 4 жыл бұрын

Interesting, thanks for the great explanation. These calculations of course are subject to assumptions, it's not always easy to know the exact cash flow you will get in year 3. Also, if there are ways to reinvest the cashflows from year 1 and year 2 back into the project, the returns could be higher...

@TheFinanceStoryteller 4 жыл бұрын

Excellent points, Peter! I agree with you. I tried to keep it as simple as possible in the video. ;-)

@mundheral.askari3450 3 жыл бұрын

Thank you so much, this is really helpful :-)

@TheFinanceStoryteller 3 жыл бұрын

You're very welcome! Great to hear that.

@sarthakkumar3326 5 жыл бұрын

Great video all clear

@TheFinanceStoryteller 5 жыл бұрын

Thank you for watching and commenting!

@dreams_in_a_pie 4 жыл бұрын

Perfect!!! I understand what NPV and IRR are!

@TheFinanceStoryteller 4 жыл бұрын

Great to hear that! Thank you! :-)

@abidullahkhamosh2099 4 жыл бұрын

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@dreams_in_a_pie 4 жыл бұрын

@@abidullahkhamosh2099 For NRV project A 35 333+278+231+193-1000=35 Same calculation for project B and C

@zainabali5951 5 жыл бұрын

Thanks... simple to understand

@TheFinanceStoryteller 5 жыл бұрын

You're welcome! Happy to hear that! :-)

@zainabali5951 5 жыл бұрын

@@TheFinanceStoryteller it's my honour...

@motalibhossain3971 4 жыл бұрын

very good explanation, thank you

@TheFinanceStoryteller 4 жыл бұрын

Nice to hear that, Motalib! Thank you for watching and commenting.

@endangeredspecies5005 4 жыл бұрын

i will bet a $10000 if the presenter is not from arabic descent. the accent is absolutely nourishing and left your spirit.

@TheFinanceStoryteller 4 жыл бұрын

Personally, I enjoy good videos regardless of the accent! ;-) But as you are asking, the accent is Dutch (i.e. from the Netherlands). I did spend a good amount of time delivering training in Abu Dhabi and Dubai, so had the pleasure of visiting the Middle East multiple times.

@vy6821 4 жыл бұрын

Thank you so much!

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Valerie! :-)

@Michael-je5bn 2 жыл бұрын

Yes, very good stuff.

@TheFinanceStoryteller 2 жыл бұрын

Glad you enjoyed it, Michael!

@RahmatAli-yg9tv 9 ай бұрын

Excellent, thanks ❤

@TheFinanceStoryteller 9 ай бұрын

You're welcome 😊 Related concepts are discussed in the NPV IRR WACC playlist: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB

@slay9470 6 ай бұрын

Thank you bro you deserve a like

@TheFinanceStoryteller 6 ай бұрын

Happy to help! Have a look at the related videos in the NPV IRR WACC playlist as well, there could be more useful stuff in there: kzfaq.info/get/bejne/Z7Vdd8Wlu9vJfas.html&pp=gAQBiAQB

@divinitytarot6 4 жыл бұрын

THANKS SIR, PLEASE MAKE MORE VIDEOS ON pay back period

@TheFinanceStoryteller 4 жыл бұрын

You're welcome! Here is a link to my video on payback period kzfaq.info/get/bejne/fLCaesxozNmvY3U.html ROI vs payback kzfaq.info/get/bejne/pZqfmZSms7m2mac.html and my video on NPV IRR payback scenarios kzfaq.info/get/bejne/Z8CEfNqe05ennWQ.html

@bobbydreamsforu 4 жыл бұрын

WoW !! Thank you very much.

@TheFinanceStoryteller 4 жыл бұрын

You're welcome, Satish! Glad to hear you liked it.

@bobbydreamsforu 4 жыл бұрын

Your explanation is beyond wonderful ❤️ Thank you brother !!

@TheFinanceStoryteller 4 жыл бұрын

@@bobbydreamsforu If you liked this video, then I recommend the related videos in the NPV IRR WACC playlist as well: kzfaq.info/get/bejne/hJOcgZiptLitp5c.html