Learn Net Present Value (NPV) In Just 10 Minutes!

Completely understand Net Present Value (NPV) in 10 Minutes! This video teaches how to calculate and interpret Net Present Value (NPV). I'll show you how to determine cash flows, understand the time value of money and the discount factor, and then calculate and interpret Net Present Value (NPV). If you have any questions about NPV, please leave them in the comments below.

Table of Contents:
00:00 - Introduction
00:10 - My Business
00:21 - Limiting Factor
00:44 - Investment Decision
01:21 - Relevant Cashflows & Investment
01:31 - Incremental Annual Contribution
01:47 - Incremental Fixed Costs
01:57 - Residual Value
02:14 - Cost of Capital
02:56 - Layout Cashflows Year-by-Year
03:09 - Timeline Visualization
04:09 - Year Zero in NPV explained
04:32 - Laying Out Years as Columns
04:44 - Adding Net Cashflow to the Spreadsheet
05:07 - Calculating the Net Cash Flows
05:55 - Calculate Payback Period
06:54 - Discounting and Time Value of Money
07:04 - Future Value
08:13 - Compounding and Future Value
08:47 - Discounting -- Present Value
09:56 - Adding the Discount Factor
10:57 - Discount Factor Expresses the Time Value
11:16 - Find Discounted Cash Flows
12:09 - Interpreting NPV
------------------------------------
Steve Willis ACCA
How to Pass ACCA Exams

#ACCAFM #accatips #acca #accarevision #accatipstoday #accauk #accastudents #accatraining #accastudy #ACCA