Submit Search
Upload
Npv Irr
•
Download as PPT, PDF
•
20 likes
•
7,747 views
sajid ghafoor
Follow
Slideshow view
Report
Share
Slideshow view
Report
Share
1 of 17
Download now
Recommended
The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.
Net Present Value - NPV
Net Present Value - NPV
ASAD ALI
Capital budgeting Summary 1
Capital budgeting Summary 1
Ibrahim Ganiyu
Net Present Value, IRR and Profitability Index
Net Present Value, IRR and Profitability Index
Net Present Value, IRR and Profitability Index
Wisnu Dewobroto
overview and basic concepts of time value of money
Time value of money
Time value of money
Ankit Jain
NPV IRR PI PB DISCOUNTED PAYBACK ARR
Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...
Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...
Akhil Sabu
general overview
A presentation on net present value
A presentation on net present value
Junaid Hassan
Relationship between IRR & NPV
Relationship between IRR & NPV
Zeeshan Ali
Payback period (PP) is the number of years it takes for a company to recover its original investment in a project, when net cash flow equals zero. In the calculation of the payback period, the cash flows of the project must first be estimated. The payback period is then a simple calculation.
Payback period by harikrishnanan
Payback period by harikrishnanan
Hari krishna
Recommended
The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.
Net Present Value - NPV
Net Present Value - NPV
ASAD ALI
Capital budgeting Summary 1
Capital budgeting Summary 1
Ibrahim Ganiyu
Net Present Value, IRR and Profitability Index
Net Present Value, IRR and Profitability Index
Net Present Value, IRR and Profitability Index
Wisnu Dewobroto
overview and basic concepts of time value of money
Time value of money
Time value of money
Ankit Jain
NPV IRR PI PB DISCOUNTED PAYBACK ARR
Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...
Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...
Akhil Sabu
general overview
A presentation on net present value
A presentation on net present value
Junaid Hassan
Relationship between IRR & NPV
Relationship between IRR & NPV
Zeeshan Ali
Payback period (PP) is the number of years it takes for a company to recover its original investment in a project, when net cash flow equals zero. In the calculation of the payback period, the cash flows of the project must first be estimated. The payback period is then a simple calculation.
Payback period by harikrishnanan
Payback period by harikrishnanan
Hari krishna
Describes in detail the steps involved in the calculation of Internal Rate of Return. Useful to students of Under graduate, post graduate and professional course students pursuing course in finance
Internal rate of return
Internal rate of return
N A M COLLEGE KALLIKKANDY
time value of money , concept of time value of money , significance of time value of money , present value vs future value , solve for the present value , simple vs compound interest rate , nominal vs effective annual interest rates , future value of a lump sum , solve for the future value , present value of a lump sum , types of annuity , future value of an annuity
Time value of money
Time value of money
Jubayer Alam Shoikat
mata kuliah: Manajement accounting semester 3 Net Present Value and Other Investment Rules
Net Present Value and Other Investment Rules
Net Present Value and Other Investment Rules
Kartika Dwi Rachmawati
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Bich Lien Pham
Internal rate of returns is that rate at which the sum of discounted cash inflow equals the sum of discounted cash outflow
Internal rate of return(IRR)
Internal rate of return(IRR)
Ulsah T N
what is capital budgeting? > capital budgeting process > method of capital budgeting
Capital budgeting
Capital budgeting
Ateeq Hashmi
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Bich Lien Pham
How to calculate Net Present Value and Internal Rate of Return of the Project?
Npv and IRR, a link to Project Management
Npv and IRR, a link to Project Management
Ujjwal Joshi
Time Value of Money
Chapter 2.Time Value of Money ppt
Chapter 2.Time Value of Money ppt
ZahraMirzayeva
capital budgeting financial knowledge
Capital budgeting
Capital budgeting
sangramkesharipatra
Discounted Cash Flow
Discounted Cash Flow
Ashley Larson
Net Present Value, Money Management, Project/Idea/Firm, Choosing A Good Firm, Decisions Criteria, 1,2,3,
Net present value
Net present value
P. Anna Paddon
Project evalaution techniques
Project evalaution techniques
Mohd Arif
Financial Management
Time value of money
Time value of money
DeeAbsalom
finance
Discounted payback period
Discounted payback period
Ravi Verma
Npv
Npv
Suresh Thengumpallil
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It may be positive, zero or negative. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. Also known as sophisticated technique for capital budgeting exercise. It accounts for time value of money by using discounted cash flows in the calculation.
NET PRESENT VALUE (NPV)
NET PRESENT VALUE (NPV)
Navya Jayakumar
Defining internal rate of return at which we can find at which rate of interest we can assume our Business and our work.
Internal Rate of Return
Internal Rate of Return
Hamza saeed Khan
Time Value of Money, calculation of Interest both with simple and compound rates, PV value, FV value,
Time value of money
Time value of money
Esmatullah Mohammady
Important Info for increasing the knowledge.
The Time Value of Money
The Time Value of Money
Jyoti Yadav
Presented by Don Duval, Director, Corporate Development, MaRS Discovery District. Part of the Post Doctoral Fellowship Networking Event.
Project Management Tools and Techniques
Project Management Tools and Techniques
MaRS Discovery District
Project Management Techniques
Project Management Techniques
project management
More Related Content
What's hot
Describes in detail the steps involved in the calculation of Internal Rate of Return. Useful to students of Under graduate, post graduate and professional course students pursuing course in finance
Internal rate of return
Internal rate of return
N A M COLLEGE KALLIKKANDY
time value of money , concept of time value of money , significance of time value of money , present value vs future value , solve for the present value , simple vs compound interest rate , nominal vs effective annual interest rates , future value of a lump sum , solve for the future value , present value of a lump sum , types of annuity , future value of an annuity
Time value of money
Time value of money
Jubayer Alam Shoikat
mata kuliah: Manajement accounting semester 3 Net Present Value and Other Investment Rules
Net Present Value and Other Investment Rules
Net Present Value and Other Investment Rules
Kartika Dwi Rachmawati
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Bich Lien Pham
Internal rate of returns is that rate at which the sum of discounted cash inflow equals the sum of discounted cash outflow
Internal rate of return(IRR)
Internal rate of return(IRR)
Ulsah T N
what is capital budgeting? > capital budgeting process > method of capital budgeting
Capital budgeting
Capital budgeting
Ateeq Hashmi
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Bich Lien Pham
How to calculate Net Present Value and Internal Rate of Return of the Project?
Npv and IRR, a link to Project Management
Npv and IRR, a link to Project Management
Ujjwal Joshi
Time Value of Money
Chapter 2.Time Value of Money ppt
Chapter 2.Time Value of Money ppt
ZahraMirzayeva
capital budgeting financial knowledge
Capital budgeting
Capital budgeting
sangramkesharipatra
Discounted Cash Flow
Discounted Cash Flow
Ashley Larson
Net Present Value, Money Management, Project/Idea/Firm, Choosing A Good Firm, Decisions Criteria, 1,2,3,
Net present value
Net present value
P. Anna Paddon
Project evalaution techniques
Project evalaution techniques
Mohd Arif
Financial Management
Time value of money
Time value of money
DeeAbsalom
finance
Discounted payback period
Discounted payback period
Ravi Verma
Npv
Npv
Suresh Thengumpallil
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It may be positive, zero or negative. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. Also known as sophisticated technique for capital budgeting exercise. It accounts for time value of money by using discounted cash flows in the calculation.
NET PRESENT VALUE (NPV)
NET PRESENT VALUE (NPV)
Navya Jayakumar
Defining internal rate of return at which we can find at which rate of interest we can assume our Business and our work.
Internal Rate of Return
Internal Rate of Return
Hamza saeed Khan
Time Value of Money, calculation of Interest both with simple and compound rates, PV value, FV value,
Time value of money
Time value of money
Esmatullah Mohammady
Important Info for increasing the knowledge.
The Time Value of Money
The Time Value of Money
Jyoti Yadav
What's hot
(20)
Internal rate of return
Internal rate of return
Time value of money
Time value of money
Net Present Value and Other Investment Rules
Net Present Value and Other Investment Rules
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Internal rate of return(IRR)
Internal rate of return(IRR)
Capital budgeting
Capital budgeting
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Npv and IRR, a link to Project Management
Npv and IRR, a link to Project Management
Chapter 2.Time Value of Money ppt
Chapter 2.Time Value of Money ppt
Capital budgeting
Capital budgeting
Discounted Cash Flow
Discounted Cash Flow
Net present value
Net present value
Project evalaution techniques
Project evalaution techniques
Time value of money
Time value of money
Discounted payback period
Discounted payback period
Npv
Npv
NET PRESENT VALUE (NPV)
NET PRESENT VALUE (NPV)
Internal Rate of Return
Internal Rate of Return
Time value of money
Time value of money
The Time Value of Money
The Time Value of Money
Viewers also liked
Presented by Don Duval, Director, Corporate Development, MaRS Discovery District. Part of the Post Doctoral Fellowship Networking Event.
Project Management Tools and Techniques
Project Management Tools and Techniques
MaRS Discovery District
Project Management Techniques
Project Management Techniques
project management
A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost. bsauter@workbench20.com www.workbench20.com
Value Engineering
Value Engineering
Bruce Sauter
This presentation is about Value Engineering and contains: 1.History of VE 2.Value Concept 3.What is Value Engineering? 4.Implementation of VE in our project 5.Principle and Purpose of VE 6.Case Study 7.Conclusion
Value Engineering
Value Engineering
Farzad Vasheghani Farahani
This presentation explains about the basic concepts related to monitoring & evaluation for the MSW students and development workers
Project Monitoring & Evaluation
Project Monitoring & Evaluation
Srinivasan Rengasamy
Monitoring & evaluation presentation[1]
Monitoring & evaluation presentation[1]
skzarif
Pert & cpm project management
Pert & cpm project management
Rahul Dubey
Project management, Knowledge Areas, Process Groups, S-Curve
Project management
Project management
Satish Yadavalli
Viewers also liked
(8)
Project Management Tools and Techniques
Project Management Tools and Techniques
Project Management Techniques
Project Management Techniques
Value Engineering
Value Engineering
Value Engineering
Value Engineering
Project Monitoring & Evaluation
Project Monitoring & Evaluation
Monitoring & evaluation presentation[1]
Monitoring & evaluation presentation[1]
Pert & cpm project management
Pert & cpm project management
Project management
Project management
Similar to Npv Irr
Capital budgeting
Capital budgeting
ankyta89
For MBA & BBA Trainees
Capital Budgeting Er. S Sood
Capital Budgeting Er. S Sood
shart sood
Capital Budgeting
Capital Budgeting
Hussain Hazara
Capital Expenditure
A ppt on capital expenditure by corporate for Mba
A ppt on capital expenditure by corporate for Mba
VishalMotwani15
PROJECT APPRAISAL PLANNING AND CONTROL
Chapter8 investmentcriteria
Chapter8 investmentcriteria
AKSHAYA0000
Lecture cash flow evaluation new
Lecture cash flow evaluation new
Bsgr Planmin
Lecture cash flow evaluation new
Lecture cash flow evaluation new
Bsgr Planmin
CBT&D
Chapter 4 CBT&D.pptx
Chapter 4 CBT&D.pptx
Saif Uddin
capital budgeting decisions criteria
capital budgeting decisions criteria
capital budgeting decisions criteria
satriachan24
Capital budgeting
Capital budgeting -2
Capital budgeting -2
Augustin Bangalore
NPV, IRR, ARR explained by PIRENS Technical Campus
Capital expenditure control
Capital expenditure control
Satish Bidgar
Nvp
NPV is net present value of document.ppt
NPV is net present value of document.ppt
SanthoshK757191
Business Finance Chapter 8 NPV and all investment Tech.
Business Finance Chapter 8
Business Finance Chapter 8
Tinku Kumar
Book
LECTURE 4 (2).pptx
LECTURE 4 (2).pptx
haiqamalik
Slide 1 8-1 Capital Budgeting • Analysis of potential projects • Long-term decisions • Large expenditures • Difficult/impossible to reverse • Determines firm’s strategic direction When a company is deciding whether to invest in a new project, large sums of money can be at stake. For example, the Artic LNG project would build a pipeline from Alaska’s North Slope to allow natural gas to be sent from the area. The cost of the pipeline and plant to clean the gas of impurities was expected to be $45 to $65 billion. Decisions such as these long-term investments, with price tags in the billions, are obviously major undertakings, and the risks and rewards must be carefully weighed. We called this the capital budgeting decision. This module introduces you to the practice of capital budgeting. We will consider a variety of techniques financial analysts and corporate executives routinely use for the capital budgeting decisions. 1. Net Present Value (NPV) 2. Payback Period 3. Average Accounting Rate (AAR) 4. Internal Rate of Return (IRR) or Modified Internal Rate of Return (MIRR) 5. Profitability Index (PI) Slide 2 8-2 • All cash flows considered? • TVM considered? • Risk-adjusted? • Ability to rank projects? • Indicates added value to the firm? Good Decision Criteria All things here are related to maximize the stock price. We need to ask ourselves the following questions when evaluating capital budgeting decision rules: Does the decision rule adjust for the time value of money? Does the decision rule adjust for risk? Does the decision rule provide information on whether we are creating value for the firm? Slide 3 8-3 Net Present Value • The difference between the market value of a project and its cost • How much value is created from undertaking an investment? Step 1: Estimate the expected future cash flows. Step 2: Estimate the required return for projects of this risk level. Step 3: Find the present value of the cash flows and subtract the initial investment to arrive at the Net Present Value. Net present value—the difference between the market value of an investment and its cost. The NPV measures the increase in firm value, which is also the increase in the value of what the shareholders own. Thus, making decisions with the NPV rule facilitates the achievement of our goal – making decisions that will maximize shareholder wealth. Slide 4 8-4 Net Present Value Sum of the PVs of all cash flows Initial cost often is CF0 and is an outflow. NPV =∑ n t = 0 CFt (1 + R)t NPV =∑ n t = 1 CFt (1 + R)t - CF0 NOTE: t=0 Up to now, we’ve avoided cash flows at time t = 0, the summation begins with cash flow zero— not one. The PV of future cash flows is not NPV; rather, NPV is the amount remaining after offsetting the PV of future cash flows with the initial cost. Thus, the NPV amount determines the incremental value created by unde.
Slide 1 8-1Capital Budgeting• Analysis of potent.docx
Slide 1 8-1Capital Budgeting• Analysis of potent.docx
edgar6wallace88877
Chap009
Chap009
LUXSVB
Capital Budgeting
Capital Budgeting
yashpal01
This PPT consists the details about capital budgeting techniques.
FM_Unit 4 - Part 1.pptx
FM_Unit 4 - Part 1.pptx
NishaGoyal63
Capital Budget
Capital Budgeting.pdf
Capital Budgeting.pdf
MdAhasanulAlamSiddiq1
Management Education and research Institute
Priyankabba
Priyankabba
PriyankaSachdeva35
Similar to Npv Irr
(20)
Capital budgeting
Capital budgeting
Capital Budgeting Er. S Sood
Capital Budgeting Er. S Sood
Capital Budgeting
Capital Budgeting
A ppt on capital expenditure by corporate for Mba
A ppt on capital expenditure by corporate for Mba
Chapter8 investmentcriteria
Chapter8 investmentcriteria
Lecture cash flow evaluation new
Lecture cash flow evaluation new
Lecture cash flow evaluation new
Lecture cash flow evaluation new
Chapter 4 CBT&D.pptx
Chapter 4 CBT&D.pptx
capital budgeting decisions criteria
capital budgeting decisions criteria
Capital budgeting -2
Capital budgeting -2
Capital expenditure control
Capital expenditure control
NPV is net present value of document.ppt
NPV is net present value of document.ppt
Business Finance Chapter 8
Business Finance Chapter 8
LECTURE 4 (2).pptx
LECTURE 4 (2).pptx
Slide 1 8-1Capital Budgeting• Analysis of potent.docx
Slide 1 8-1Capital Budgeting• Analysis of potent.docx
Chap009
Chap009
Capital Budgeting
Capital Budgeting
FM_Unit 4 - Part 1.pptx
FM_Unit 4 - Part 1.pptx
Capital Budgeting.pdf
Capital Budgeting.pdf
Priyankabba
Priyankabba
More from sajid ghafoor
New microsoft office power point presentation
New microsoft office power point presentation
sajid ghafoor
Al qur'an
Al qur'an
sajid ghafoor
Al qur'an
Al qur'an
sajid ghafoor
Store Accounting
Store Accounting
sajid ghafoor
Global warming
Global warming
sajid ghafoor
Al qurqn 1
Al qurqn 1
sajid ghafoor
Al qurqn 1
Al qurqn 1
sajid ghafoor
Al quran
Al quran
sajid ghafoor
Sajid
Sajid
sajid ghafoor
Accounting reports & accountabilit
Accounting reports & accountabilit
sajid ghafoor
Hajj presentation
Hajj presentation
sajid ghafoor
Training
Training
sajid ghafoor
Project
Project
sajid ghafoor
Project
Project
sajid ghafoor
Ei
Ei
sajid ghafoor
Financial Forecasting
Financial Forecasting
sajid ghafoor
Risk And Returns
Risk And Returns
sajid ghafoor
Break Even
Break Even
sajid ghafoor
Risk And Returns
Risk And Returns
sajid ghafoor
Participative Management
Participative Management
sajid ghafoor
More from sajid ghafoor
(20)
New microsoft office power point presentation
New microsoft office power point presentation
Al qur'an
Al qur'an
Al qur'an
Al qur'an
Store Accounting
Store Accounting
Global warming
Global warming
Al qurqn 1
Al qurqn 1
Al qurqn 1
Al qurqn 1
Al quran
Al quran
Sajid
Sajid
Accounting reports & accountabilit
Accounting reports & accountabilit
Hajj presentation
Hajj presentation
Training
Training
Project
Project
Project
Project
Ei
Ei
Financial Forecasting
Financial Forecasting
Risk And Returns
Risk And Returns
Break Even
Break Even
Risk And Returns
Risk And Returns
Participative Management
Participative Management
Npv Irr
1.
Capital Budgeting Techniques
and Practice
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Profitability Index PI
= IO ACF t (1 + k) n t=1 t NPV = - IO ACF t (1 + k) t n t=1
12.
13.
14.
Internal Rate of
Return (IRR) NPV = - IO ACF t (1 + k) t n t=1 n t=1 IRR: = IO ACF t (1 + IRR) t
15.
16.
17.
Download now