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Showing posts with label net present value. Show all posts
Showing posts with label net present value. Show all posts
Monday, 20 August 2018

Net Present Value and Profitability Index

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Net Present Value (NPV) an indicator of how much value an investment could contribute to the firm takes into account the concept of tim...
Saturday, 3 June 2017

Flexibility: The inclusion of flexibility into the analysis is generally more relevant in the valuation of individual businesses and projects.

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Net present values (NPVs) calculated from single cash flow projections may be inadequate because they do not take into account the ability...
Saturday, 29 April 2017

Dividend Discount Model

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Present Value Models Dividend Discount Model 1.  If a company pays regular dividends The dividend discount model (DDM) values a shar...
Monday, 10 April 2017

Investment Decisions

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Some investment decisions are easy to make. Perhaps, a government safety regulation makes an item of capital expenditure compulsory. O...
Sunday, 15 January 2017

Business value cannot be precisely determined. Make use of ranges of values.

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Business value cannot be precisely determined.  Not only do a number of assumptions go into a business valuation, but relevant macro and...
Sunday, 6 December 2015

Investment Decisions and Fundamentals of Value

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Investment Decision Rules: Accept all investments with Net Present Value greater than Zero. Accept all investments with Rates of Ret...
Saturday, 3 September 2011

What Does Net Present Value - NPV Mean?

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What Does  Net Present Value - NPV  Mean? The difference between the present value of cash inflows and the present value of cash outflows....
Saturday, 29 May 2010

The Time Value of Money

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"A bird in hand (today) is worth two in the bush (tomorrow)." Everyone would rather have a dollar in his or her pocket today tha...
Friday, 23 April 2010

How much should you pay for a business? Valuing a company (6)

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Cash flows When considering purchasing a company, another way to value the business is to examine what cash it will generate over a period...