Net Present Value (NPV)

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  • Опубликовано: 16 сен 2013
  • This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example.
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Комментарии • 597

  • @TraumaER
    @TraumaER 3 года назад +109

    *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!_

    • @Edspira
      @Edspira  2 года назад +11

      I'm glad you understood the video, but I'm sorry that your prof sucked!

    • @TraumaER
      @TraumaER 2 года назад +2

      @@Edspira haha thanks! Funny reply!

    • @MrSiloterio
      @MrSiloterio 2 года назад +2

      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!

    • @SarcasmSage
      @SarcasmSage Год назад +2

      same here.. our Professor posted this video to be learned rather than teaching himself..

    • @DinnoPizza
      @DinnoPizza 3 месяца назад +1

      im living this right now

  • @richardgordon
    @richardgordon 7 лет назад +142

    Brilliantly explained. You make me feel a lot smarter than I actually am.

  • @lilmoesk899
    @lilmoesk899 6 лет назад +43

    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.

  • @joannas22
    @joannas22 8 лет назад +832

    I guess we are all here trying to find out how to pass successfully our Corporate Finance exam :D

    • @joannas22
      @joannas22 8 лет назад +30

      Oooh, and good luck to everyone who is struggling with it!

    • @4dwyn
      @4dwyn 7 лет назад +1

      You betcha :)

    • @karish8622
      @karish8622 6 лет назад

      YEs! :'(

    • @Zeioth
      @Zeioth 6 лет назад +9

      Some people have an actual business, you know.

    • @Kashif.naseer
      @Kashif.naseer 6 лет назад +1

      Dzhoanna Starkova indeed

  • @ashleysanfino8221
    @ashleysanfino8221 7 лет назад +6

    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.

  • @mohammadshoaib9521
    @mohammadshoaib9521 5 лет назад +22

    legit better than my University class, learned this concept in 7 mins... and didnt learned it there even after 3 whole hours

    • @rawadrizk999
      @rawadrizk999 5 лет назад +1

      What uni do you attend?

    • @PHOEBEE69
      @PHOEBEE69 4 года назад +1

      me freaking too. omg, was literally bout to drop out lmao

  • @CristianGarcia-kc9zd
    @CristianGarcia-kc9zd 9 лет назад +53

    Great videos... Simple and to the point.... Great work I learned more from your videos than my professor trying to explain it in 4hrs

  • @RicoSuave678
    @RicoSuave678 8 лет назад +23

    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.

    • @Edspira
      @Edspira  8 лет назад +4

      +Joseph Perez Thank you for the kind words. I'm happy to hear you've mastered the concept!

    • @reginakuai7307
      @reginakuai7307 3 года назад

      @@Edspira yj cgdmz

  • @AstriDBZ
    @AstriDBZ 8 лет назад +3

    Thank you so much for offering these calculations for free on RUclips, they are highly appreciated! :)

  • @barbaramatoscarvalho8467
    @barbaramatoscarvalho8467 4 года назад +4

    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!

  • @chriscrenshaw3230
    @chriscrenshaw3230 2 года назад +16

    Love this guy, been helping me with my MBA for the past year or so now.

  • @darellteague3845
    @darellteague3845 7 лет назад +2

    Dude, after hours of trying to read tables, these formulas are more my forte. Why thank you, Edspira.

  • @dianeharpal4811
    @dianeharpal4811 4 года назад +6

    I wish RUclips"s algorithms lead me here when I started college, you have been so much help.

  • @VGNAclan
    @VGNAclan 7 лет назад +6

    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!

    • @Edspira
      @Edspira  7 лет назад +3

      No problem. You deserve all the respect for not giving up!!

  • @randaalisawi4655
    @randaalisawi4655 8 лет назад +70

    Thank you soooo much for this very simple explanation, I have an exam tomorrow and I was finding it very confusing. Much appreciated!

    • @Edspira
      @Edspira  8 лет назад +4

      +Randa Alisawi No problem! I hope you did great on your exam!!

    • @praxisvictim5348
      @praxisvictim5348 3 года назад +1

      very nice. how much

  • @copperntod17
    @copperntod17 7 лет назад +8

    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

    • @Edspira
      @Edspira  7 лет назад +2

      Thanks so much for the kind words. Best of luck in your MBA class!

  • @mohammedanbool9688
    @mohammedanbool9688 7 месяцев назад +1

    I am an IB student from Yemen. I wanna say that you really deserve a huge thanks for your efforts.
    Thanks a lot. ❤

  • @InSterquiliniisInvenitur
    @InSterquiliniisInvenitur 9 лет назад +6

    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!

    • @aldisilvia
      @aldisilvia 8 лет назад +1

      +Alex Creznic 6% is the discount rate he said at the end of the video

  • @austinmatt3688
    @austinmatt3688 9 лет назад +5

    Excellent video, great simplification of terminology and spot on example!

  • @88spaces
    @88spaces 4 года назад +1

    You made the concept of NPV crystal clear. Thank you.

  • @likquidsteel
    @likquidsteel 7 лет назад +2

    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.

  • @lenalarina59
    @lenalarina59 4 года назад +3

    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 😘

  • @robinj.792
    @robinj.792 6 лет назад +3

    Sir, thank you for for taking time to record and share your videos. I actually understand! Again, sincere gratitude.

    • @Edspira
      @Edspira  6 лет назад +2

      No problem. Thanks for watching!

  • @abee207
    @abee207 7 лет назад +1

    Only genius can explan it in SIMPLE way . Thank you !

  • @atheekfareed4691
    @atheekfareed4691 2 года назад

    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!

  • @dave9343
    @dave9343 2 года назад

    Excellent, as usual. You have the knowledge and you know just how to impart it for anyone to understand.

  • @r42221
    @r42221 7 лет назад

    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!

  • @devllb83
    @devllb83 4 года назад +2

    tons of thanks for such a simplified explanation....

  • @stefaniac2095
    @stefaniac2095 8 лет назад +5

    it was so easy, and all the books make it so complicated. thank you for making it sound like a piece of cake.

    • @Edspira
      @Edspira  8 лет назад +3

      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

  • @JoeH..
    @JoeH.. Год назад

    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.

  • @paulaclark828
    @paulaclark828 7 лет назад

    Great and straight forward explanation!!! I finally understood such complicating concept. Thank you.

  • @AA-lq5pu
    @AA-lq5pu 7 лет назад +2

    You explained very well! Thank you for your time.

  • @MysticalDreamerr
    @MysticalDreamerr Месяц назад

    OMG, thank you soooo much!!! Your explanation is way clearer than any other videos I've watched. You're my lifesaver!😭🙏

  • @ramazonpine4151
    @ramazonpine4151 4 месяца назад

    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:)

  • @elijahmoss9114
    @elijahmoss9114 7 лет назад +2

    Great explanation, I understood now better than my lecturer's...I'm studying Financial Management

  • @MrCEO-jw1vm
    @MrCEO-jw1vm Месяц назад

    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!

  • @tomw1508
    @tomw1508 5 лет назад

    In 2019 and this video is still insanely helpful.

  • @stansidorov
    @stansidorov 7 лет назад +8

    Brilliant explanation. I think your video should be in investopedia. Thanks a lot.

  • @theEmmasound
    @theEmmasound Год назад +1

    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 :).

    • @Edspira
      @Edspira  Год назад

      Thank you so much for the encouragement!

  • @zippy2u
    @zippy2u 7 лет назад +1

    Thanks for an excellent and thoroughly understandable explanation of the process.

  • @ryancresswell4398
    @ryancresswell4398 6 лет назад +1

    Excellent explanation of NPV. Thank you!

  • @nomnom6136
    @nomnom6136 7 лет назад

    u make complicated stuff soo simple,n only few can do dat.....tnx a lot

  • @appalashettymounika1599
    @appalashettymounika1599 8 лет назад +3

    Thank you, and simplified the complex problem to simple explanation !

    • @Edspira
      @Edspira  8 лет назад +1

      Thank you! I love your name!!

  • @hopemsoffe702
    @hopemsoffe702 Год назад

    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.

  • @brandonbandstra226
    @brandonbandstra226 2 года назад +3

    You are such a clear teacher! Thank you SO MUCH!

    • @Edspira
      @Edspira  2 года назад

      Glad you think so!

  • @pratyaksharneja2082
    @pratyaksharneja2082 3 года назад +1

    Never gets old. Fantastic and concise explanation

  • @sunnylk6991
    @sunnylk6991 4 года назад

    This is the best explanation ever. Thank you so much!

  • @ctonew6155
    @ctonew6155 6 лет назад +5

    This was better than watching ITunes U's MIT Finance course. I like the way you explained why NPV >0 and its importance.

    • @Edspira
      @Edspira  6 лет назад +1

      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!

  • @rhinojosa055
    @rhinojosa055 7 лет назад +1

    your lessons are excellent sir. main reason i got through my beginning MBA classes

  • @riy99
    @riy99 8 лет назад +3

    Thank you, In fact, it is clear and simple.

  • @Hershekiss38
    @Hershekiss38 6 лет назад +2

    Your videos are easy to follow. I appreciate you a great deal!

    • @Edspira
      @Edspira  6 лет назад +1

      Thank you my friend!

  • @Weightingtablesafter
    @Weightingtablesafter 7 лет назад +29

    God bless your beautiful soul.

  • @norma-jeabarsh5266
    @norma-jeabarsh5266 8 лет назад +3

    Thanks. You make things so easy to understand. I have been out of school a long time, and forgot these concepts.

    • @Edspira
      @Edspira  8 лет назад +1

      +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 :)

  • @ariah5093
    @ariah5093 Год назад +1

    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!

    • @Edspira
      @Edspira  Год назад +1

      I'm so happy to hear that it clicked! Thank you for the kind words, and good luck with your course!

  • @rent1762
    @rent1762 7 лет назад

    Thanks, this is one of the better videos explaining NPV.

    • @Edspira
      @Edspira  7 лет назад

      Thank you for the comment. Take Care!

  • @gianneyeung5147
    @gianneyeung5147 3 года назад +3

    This is so much easier to understand the 3 hour lecture at the business school I'm attending.

    • @Edspira
      @Edspira  2 года назад

      That sounds painful, ouch!

  • @ahmedhussam9259
    @ahmedhussam9259 8 лет назад +1

    Thank you very much I've exam after 2 hours and you help me very much !!

  • @illiterut
    @illiterut 4 года назад +1

    really great explanation - thanks for not rushing and for explaining thoroughly

  • @akramayoub2536
    @akramayoub2536 6 лет назад +1

    excellent and very simple explanation!
    Thx

  • @bandiilem201
    @bandiilem201 4 года назад +1

    6 years ago, but still useful.
    Thank you✔️✔️

  • @BanCoP3Q3VN
    @BanCoP3Q3VN 4 года назад +1

    Thank you for a short video that well explains what is NPV and why we need to use them.

  • @haileysailor
    @haileysailor 6 лет назад

    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!

  • @Chostax
    @Chostax 7 лет назад +1

    coming up huge again for me! thanks so much

  • @maciejrutkowski6807
    @maciejrutkowski6807 Год назад

    Simple explained. I got it. THANK YOU!

  • @regisndongo5723
    @regisndongo5723 8 лет назад +4

    Very clear and well explained. Thank you very much. I enjoyed the video.

    • @Edspira
      @Edspira  8 лет назад

      +Regis Ndongo Thank you!

  • @mamadoubillodiallo2243
    @mamadoubillodiallo2243 5 лет назад +1

    Thank u sir u just made remember this npv for life

  • @X_EGY
    @X_EGY 5 месяцев назад

    BRILLIANT, THANK YOU SO MUCH, BEST EXPLANATION EVER.

  • @robertosandoval6335
    @robertosandoval6335 Месяц назад

    Wish all teachers were this good.

  • @AM-sr8bu
    @AM-sr8bu 8 лет назад +3

    thanks, i have a corporate finance exam today, and this really helps a lot

    • @Edspira
      @Edspira  8 лет назад

      No problem- I hope you did great on your exam!

  • @edleneferreira158
    @edleneferreira158 4 года назад +3

    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.

    • @Edspira
      @Edspira  2 года назад

      No problem my friend 😀

  • @saisanthoshsomasundaram5604
    @saisanthoshsomasundaram5604 6 лет назад +1

    You have explained it in a simple manner. Thanks.

    • @Edspira
      @Edspira  6 лет назад

      Awesome. Thanks for watching!

  • @KOnneh1234
    @KOnneh1234 9 месяцев назад

    You are such a great teacher, just had to stop the video to tell you.

  • @leedonski1031
    @leedonski1031 7 лет назад +1

    Thanks a lot for this explanation, very concise!!!

  • @samelondon3165
    @samelondon3165 6 лет назад

    Thank you for your fine analysis. It's really a great help.

  • @VP-yp8ip
    @VP-yp8ip 9 месяцев назад

    This is so helpful and easily explained. Thank you so much.

  • @buster117
    @buster117 2 года назад

    Marvellous presentation! Thank you.

  • @chonladapipatsakornchai6626
    @chonladapipatsakornchai6626 9 лет назад +3

    Really thank you for this VDO.

  • @deliari1
    @deliari1 6 лет назад +1

    best explanation ever for my Supply Chain Class !! :)

    • @Edspira
      @Edspira  6 лет назад +1

      Awesome. Glad to help!

  • @salmahazem5850
    @salmahazem5850 3 года назад +1

    Thank you so much you explained it so easily, I can't believe that this is the same topic that my professor explained!!!!

    • @Edspira
      @Edspira  3 года назад

      No problem, I'm glad you understand the topic now!

  • @bleeper87
    @bleeper87 8 лет назад

    Very nicely explained. Thanks!

  • @floralscraftanddiys
    @floralscraftanddiys Месяц назад

    After 10 year, ifund this valuable 😮the real reason i like RUclips 😊

  • @ConnorWilkins
    @ConnorWilkins 3 года назад +2

    This guy has helped me more than my professor for my MBA.

    • @Edspira
      @Edspira  2 года назад

      Happy to help my friend!

  • @AnjanaPi123
    @AnjanaPi123 7 лет назад

    Thank u so much. explained well. simple & easy to understand.

  • @brettalexander7097
    @brettalexander7097 2 года назад +1

    Thank you for making this video. Finally starting to make sense to me now 💡

    • @Edspira
      @Edspira  2 года назад

      Glad it was helpful!

  • @bnnm23
    @bnnm23 2 года назад +1

    Very well explained. Thank you

  • @nikitagorbachevskiy6664
    @nikitagorbachevskiy6664 4 года назад +1

    Amazing! Simple and clear. Thank you!

  • @chosen167
    @chosen167 2 года назад +1

    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.

    • @Edspira
      @Edspira  2 года назад

      Happy to help!

  • @davesurprenant5548
    @davesurprenant5548 6 лет назад

    Great explanation! Good visuals and clear, well paced narrative!

  • @99lomari
    @99lomari 4 года назад +1

    Excellent Sir, how simple and easy way you adopted to transfer this valuable knowledge, really appreciate a lot,

  • @rachaelfoster7649
    @rachaelfoster7649 4 года назад +1

    Thank you so much for helping me to make sense of this topic at last!!!!

  • @krazymilkman
    @krazymilkman 6 лет назад +2

    Such a perfect explanation! Thanks

  • @akashnaveed9861
    @akashnaveed9861 Год назад

    Superb Amazing technique of teaching Sir Really appreciate

  • @purplezebra3758
    @purplezebra3758 8 лет назад

    Excellent explanation. Thank you.

  • @adhipsharma341
    @adhipsharma341 5 лет назад

    Very good explanation for understanding npv and apply that to your project calculations

  • @TheLadymaryam
    @TheLadymaryam 3 года назад +1

    thank you so much, I do not know why our professor is not able to explain like this.

    • @Edspira
      @Edspira  2 года назад +1

      Happy to help!

  • @yashcena15
    @yashcena15 8 лет назад

    thanks for the easy explanation. helped a lot

  • @mayoe1430
    @mayoe1430 2 года назад +1

    Good explanation. Thanks for this content

  • @ariukaa27
    @ariukaa27 9 лет назад +7

    Thank you! now i got it!

  • @Srilankatraderuk
    @Srilankatraderuk 8 лет назад +2

    Thanks so much for these great videos.

  • @sharminmanocha3938
    @sharminmanocha3938 3 года назад +1

    Thank you for your video, it provided me with better clarity of the NPV concept, cheers!

    • @Edspira
      @Edspira  2 года назад

      You're very welcome!