Net Present Value (NPV)
HTML-код
- Опубликовано: 5 фев 2025
- This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: podcasts.apple...
Spotify: open.spotify.c...
Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
www.edspira.co...
-
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
-
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
www.edspira.co...
michaelmclaugh...
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
*Just here studying for a Master's Degree course because my actual teacher spent 3 hours confusing the class. I now understand in under 10 minutes.*
_Technology #1!_
I'm glad you understood the video, but I'm sorry that your prof sucked!
@@Edspira haha thanks! Funny reply!
Same! Also preparing for our final comprehensive exam in Graduate School and Edspira is a life-saver! Not just in finance but also in my econ class!
same here.. our Professor posted this video to be learned rather than teaching himself..
im living this right now
How come eight people have tried to explain this concept to me and you're the first to do so in a simple way that makes sense? Thank you for this, you're saving my ass in managerial accounting right now.
You're definitely a skilled teacher. Your MBA students should feel lucky to have you (my accounting professor is, unfortunately, horrible at explaining anything). I'm jealous of them. Visited your website and just wanted to say thank you for doing what you do. The world needs more people like you.
Brilliantly explained. You make me feel a lot smarter than I actually am.
🤣🤣 word
fr fr
Same😂
I am an IB student from Yemen. I wanna say that you really deserve a huge thanks for your efforts.
Thanks a lot. ❤
You managed to take something I couldn't understand after going to multiple classes, and made it very easy to understand in just 9 min and 25 sec. Thank You so much!
No problem. You deserve all the respect for not giving up!!
legit better than my University class, learned this concept in 7 mins... and didnt learned it there even after 3 whole hours
What uni do you attend?
me freaking too. omg, was literally bout to drop out lmao
We should avoid your university 😂
THANK YOU SO VERY MUCH FOR ALL THE WONDERFUL VIDEOS YOU HAVE SO KINDLY PROVIDED. I AM TAKING MY FIRST MBA PROGRAM CLASS (ACCTG AND FINANCE FOR MANAGERS) AND ALL YOUR VIDEOS HAVE HELPED ME IMMENSELY. I LISTEN TO THEM AT WORK ALL DAY AND BY THE TIME I READ THE ASSIGNED MATERIAL, I AM VERY FAMILIAR WITH IT, AND I OWE MANY THANKS TO YOU... THANK YOU, THANK YOU!!! :D
Thanks so much for the kind words. Best of luck in your MBA class!
The best explanation of NPV. Thank you - concise, well explained and presented in a sequential manner that simply put all the pieces together to understand the concept of NPV.
+Joseph Perez Thank you for the kind words. I'm happy to hear you've mastered the concept!
@@Edspira yj cgdmz
Dude, after hours of trying to read tables, these formulas are more my forte. Why thank you, Edspira.
Thank you soooo much for this very simple explanation, I have an exam tomorrow and I was finding it very confusing. Much appreciated!
+Randa Alisawi No problem! I hope you did great on your exam!!
very nice. how much
I wish RUclips"s algorithms lead me here when I started college, you have been so much help.
If only my MBA teacher explained this I wouldn't have to resort to spending $0 learning this on RUclips. You have added value to my life thanks.
Happy to help!
Thank you very much. I got the concept of NPV just under 10 minutes, which is absolutely decent. Its good to know that this type of content is free of charge:)
I've already tried to understand it with multiple books and other videos and I never understood it. Now within minutes I was so clear! Thank you so much for this amazing video!
I am prepping for my ACCA-SBL exam on March 7, 2023. We usually have a FINANCIAL PROJECTIONS section which requires us to analyze a proposed investment. I am grateful for this video. Brief and easy to understand. Thank you, Sir.
I remember a year ago, I was watching your channels videos and one of examples that was quite funny was coming to my mind from time to time and would make me smile, and today I came across your channel again and that example about clown came to my mind, it made me wonder who is the person behind the videos with this great sense of humour and extremely exquisite explaining abilities. I just googled it , came across your website and your childhood story. It is really inspiring story for many teens and even complete adults like myself. Thank you for this channel and videos, best wishes 😘
Love this guy, been helping me with my MBA for the past year or so now.
That last part you said about making more than what we could have made if we invested It at 6% made so much sense! Thank you! God bless you, brother!
I'm so happy to hear that it clicked! Thank you for the kind words, and good luck with your course!
Great videos... Simple and to the point.... Great work I learned more from your videos than my professor trying to explain it in 4hrs
couldn't help but subscribe after stumbling on this.
I'm a college student trying to lear about finance, and you do a great job explaining and motivating this topic with the examples effectively conveying the message. I like the interpretation too!
Thank you so much for offering these calculations for free on RUclips, they are highly appreciated! :)
Thank you so much. Thank you for actually explaining the conceptual framework for why this is important, when we do it and why we do it. It not only makes me understand the calculations better, but makes it all the more interesting. You are 10000x better than my current MBA teacher :).
Thank you so much for the encouragement!
Excellent explanation, using non-standard words like discounting, discount rate, opportunity to invest somewhere else and so on. This makes is easier to relate to the concept. Good job!
Only genius can explan it in SIMPLE way . Thank you !
I pay £9000 to watch RUclips videos. But videos like this helps ALOT so thank you!
This was better than watching ITunes U's MIT Finance course. I like the way you explained why NPV >0 and its importance.
Awesome. I'm glad this video helped you! I have 6 more videos on financial decision making related to corporate finance. You can check them out here: edspira.com/lessons/financial-decision-making Thanks for watching!
I guess we are all here trying to find out how to pass successfully our Corporate Finance exam :D
Oooh, and good luck to everyone who is struggling with it!
You betcha :)
YEs! :'(
Some people have an actual business, you know.
Dzhoanna Starkova indeed
This was very informative and easy to understand! I like how brief the lesson is too. I wish more people could explain with this clarity. Keep it up!
+Alex Creznic 6% is the discount rate he said at the end of the video
My search ends here, thank you❤️💯.
I just wanted to know what does NPV > 0 means and everybody was busy explaining the formula which I can google.
Even though you made your videos 10yrs ago they've saved me so many times during this managerial accounting class, pretty sure they've made the difference between me failing and my B average. :'> Hard classes to take but the videos helped alleviate the pain of this course a bit. (I'm not trying to become an accountant, I'm studying management and marketing.) Thanks for helping me increase my human capital.
You are a legend my friend. Hours lost on lectures and this explained in 9 mins
Awesome, thanks for watching!
it was so easy, and all the books make it so complicated. thank you for making it sound like a piece of cake.
Why do so many textbook authors do that... I'll never understand! I'm glad you were able to learn the concept and I hope you do great in your courses! Best wishes
OMG, thank you soooo much!!! Your explanation is way clearer than any other videos I've watched. You're my lifesaver!😭🙏
This is so much easier to understand the 3 hour lecture at the business school I'm attending.
That sounds painful, ouch!
Sir, thank you for for taking time to record and share your videos. I actually understand! Again, sincere gratitude.
No problem. Thanks for watching!
Thanks for your work! I`m from Ukraine and my professor were killed in the war. Our class now studying by ourselves and yours videos helps a lot!
thank you so much, I do not know why our professor is not able to explain like this.
Happy to help!
Very good explanation. I am not from a financial background and I need to learn this concept and calculation for my Project Management course. Thank you for explaining down to the details, so even people like me (with little mathematical skills) could understand.
No problem my friend 😀
thank you so muchhhhhhhh!! I have tried to understand NPV but cannot until finding your video!! your video is better at explaining NPV than the Cambridge textbook 😭
I'm so glad you found the video helpful!
This guy has helped me more than my professor for my MBA.
Happy to help my friend!
Youre a legend. Ill have to share this with my accounting class. Ive not even started learning this in class yet i worked this out on an example and answer sheet aligns with the method.
You made the concept of NPV crystal clear. Thank you.
Damn, this is actually surprisingly easy.
These damn finance formulas make everything look so complicated
Agreed!
u make complicated stuff soo simple,n only few can do dat.....tnx a lot
Great explanation, I understood now better than my lecturer's...I'm studying Financial Management
Thank you so much! This is the first video with an explanation I've understood, I'm grateful
Thank you for a short video that well explains what is NPV and why we need to use them.
No problem!
I have a finance exam in two days and I know nothing about finance but its actually fun thank you for explaining this with exams
Hope it went well and you passed!!
Great video. Great effective use of explaining concepts and employing familiar proper terms and equations, the education of which remained dormant from my undergraduate finance days until now. Thank you.
i wish youtube was a part of my resource of additional education while i was in school. but luckily I am studying for a project certification, and this came in handy too!
Thank you, thank you! This was such a great explanation and it sunk in the first time. Until now, I was fuzzy on the concept of NPV because I had read so many bad explanations in the past. Great teacher!
your lessons are excellent sir. main reason i got through my beginning MBA classes
thanks, i have a corporate finance exam today, and this really helps a lot
No problem- I hope you did great on your exam!
Excellent Sir, how simple and easy way you adopted to transfer this valuable knowledge, really appreciate a lot,
No problem!
Thanks. You make things so easy to understand. I have been out of school a long time, and forgot these concepts.
+Norma-Jea Barsh No problem! It's funny how quickly we forget concepts if we don't use them in our daily lives... I studied a lot my initial years of college, but now the material seems like ancient history :)
You are such a great teacher, just had to stop the video to tell you.
Thank you so much for the simple explanation, currently writing an assignment about economic feasibility study.
Good luck with your assignment!
Thank you so much for doing what you do. I have been struggling thinking I'm too old for this...lol. My instructor will not teach. She just says watch the video.
After 10 year, ifund this valuable 😮the real reason i like RUclips 😊
Wait, this is a great explanation!
Thank you!
Thanks, this is one of the better videos explaining NPV.
Thank you for the comment. Take Care!
Thank you for your video, it provided me with better clarity of the NPV concept, cheers!
You're very welcome!
Brilliant explanation. I think your video should be in investopedia. Thanks a lot.
Thank you for the explanation of what the NPV means. I got the formula but didn't grasp the meaning of the outcome. Excellent explanation.
Thank you!
Exam is tomorrow and this video helped me so much. really thank you!!
Thanks. I wish you the best on your exam!
You are such a clear teacher! Thank you SO MUCH!
Glad you think so!
really great explanation - thanks for not rushing and for explaining thoroughly
Sure thing!
30 pages of a text book and 2 hours of a lecture and it clicks for me now after this 9.5 minute video.
😀
best explanation ever for my Supply Chain Class !! :)
Awesome. Glad to help!
Thank you very much I've exam after 2 hours and you help me very much !!
Thank you so much you explained it so easily, I can't believe that this is the same topic that my professor explained!!!!
No problem, I'm glad you understand the topic now!
Excellent, as usual. You have the knowledge and you know just how to impart it for anyone to understand.
Thanks for laying down such a perfect explanation on this topic, I find it very helpful because lately i have been trying to understand the value of cash ranging with time difference especially now i get to invest in the stock market.
Wow, You invest in the stock market? You must have known so much about the stock market because knowing little is dangerous when it comes to trading stocks
The stock market profit those with vast knowledge on how it works
After reading a few books and also watching some youtube videos i thought i was very ready to invest all by myself. I ended up losing my capitals
@@stacybob9453 hahaha you got so unlucky i've been in those shoes and i know how losing money to the market hurts
Real Life. It’s been profitable especially since a pro trader helps run my account.
Wish all teachers were this good.
You have explained it in a simple manner. Thanks.
Awesome. Thanks for watching!
Very clear and well explained. Thank you very much. I enjoyed the video.
+Regis Ndongo Thank you!
Your videos are easy to follow. I appreciate you a great deal!
Thank you my friend!
Excellent video, great simplification of terminology and spot on example!
Never gets old. Fantastic and concise explanation
Thank you!
Excellent explanation of NPV. Thank you!
incredible that you explained this in 9 minutes compared to my professor who can't do it in 3 and a half hours
Thank you, and simplified the complex problem to simple explanation !
Thank you! I love your name!!
thank you for this video in class it was so complicated. Now i understand the concept
Excellent!
Superb Amazing technique of teaching Sir Really appreciate
Thank you so much. This area always bugged me. But you explained it very well
Thank you so much for helping me to make sense of this topic at last!!!!
No problem!
In 2019 and this video is still insanely helpful.
tons of thanks for such a simplified explanation....
Explained well & Much better than my professors
Thank you!
thank you i was troubled with this. Thank you from the University Of Zimbabwe
Hesi
Wow very nice explanation 🙏
Thank you!
Thank you for making this video. Finally starting to make sense to me now 💡
Glad it was helpful!
speed : 1.5 and you are the perfect teacher
this man is easily 100 times better than my actual current teachers lmao
I can now pass my exam tomorrow thnx alot
LIFE SAVER. finals in a week
BRILLIANT, THANK YOU SO MUCH, BEST EXPLANATION EVER.
What does it mean if the NPV is just 1 for example? Would you still accept the project since it satisfies the NPV>0 criteria?
Good question
I'm taking health care finance for the second time and am loosing my mind. Thanks for this video because i can not afford or mental handle a 3rd time.