NPV
Discounted cashflow calculation
NPV stands for net present value, a financial calculation that determines what future cash flows are worth today.
The concept recognizes that money now is worth more than the same amount later.
A positive NPV means an investment should generate returns above its cost; negative NPV suggests it won't.
The project's NPV came out negative, so we passed.
Discounted sum of cash flows
- present valueCurrent equivalent of future sum
- future valueAmount after growth
- discount rateInterest on Fed loans
- discounted cash flowTime-adjusted revenue valuation
cash flows · inflows · outflows · annuity · perpetuity · compounding · discounting · inflation adjustment
Discount rate zeroing NPV
- payback periodDuration until costs recovered
- return on investmentProfit relative to cost
- ROIProfit-to-cost ratio
- decision treeBranching predictive model
Distributing funds among investments
- due diligencePre-transaction reasonable care
- strategic investmentPlanned financial commitment for future gain
- resource allocationAssigning available means strategically
- capital expenditureSpending on fixed assets
Reasonable exchange price
- intrinsic valueWorth independent of circumstance
- market valueCurrent trading price
- leveraged buyoutDebt-funded corporate acquisition
- LBODebt-funded acquisition
net present value
Discounted sum of cash flows
- present valueCurrent equivalent of future sum
- future valueAmount after growth
- discount rateInterest on Fed loans
discounted cash flow · cash flows · inflows · outflows · annuity · perpetuity · compounding · discounting · inflation adjustment · hurdle rate
IRR
Discount rate zeroing NPV
- payback periodDuration until costs recovered
- return on investmentProfit relative to cost
- ROIProfit-to-cost ratio
decision tree · risk assessment · cost-benefit analysis · EVA
capital allocation
Distributing funds among investments
- due diligencePre-transaction reasonable care
- strategic investmentPlanned financial commitment for future gain
- resource allocationAssigning available means strategically
fair value
Reasonable exchange price
- intrinsic valueWorth independent of circumstance
- market valueCurrent trading price
- leveraged buyoutDebt-funded corporate acquisition
- corporate financecost of capital, investment, capital markets, debt financing, shareholder
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- metricsKPI, metric, KPIs, metrics, statistics
- Insect Pathogenszombie fungus, Pandora
- cost analysiscost analysis, cost assessment, cost basis, cost savings, direct costs
- Financial Modelsdiscounted cash flow, pro forma, forecast model, financial modeling, forecast
Duration until costs recovered