THE PENNY JUST DROPPED. I'M DOING AN ASSESSMENT AND I'VE BEEN TRYING TO WORK OUT THE DISCOUNTED CASH FLOW FOR THE PAST 2.5 HOURS! THANK YOU SO MUCH I FINALLY GOT IT FROM YOUR EXPLANATION!
I’m a senior finance student and this was a excellent description of the three different topics. I understood them on the surface , but now I really understand how they work with one another
Everyone in the comments seem to be from the finance world and here i am an architect who for some reason needs to learn this for my masters in sustainability 😂
Dear Friends, I have a case of capital budgeting: Example: I want to build new factory, I know the build cost is CAPEX budget and cash outflow. When the factory begin run, I need purchase raw materials, purchase labor, purchase overhead (water, electric,etc) to manufacture finished goods. I know this costs depreciation cost from this factory is OPEX cost. Question: With the capital budgeting, I will collect the CAPEX and OPEX inside a plan or seperate plans?. Capital budgeting need to OPEX cost to run and examine effeciency of this factory, right?. Could you help?. Thank you.
Hey Mate! I think you made a mistake in the TMR calculations. When calculating the HPR(2) you forgot to multiply the beginning value, dividend paid and ending value by 2. The HPR(2) should be 15.79% which makes the TMR equal to 17.87% 👍🏼👍🏼
When i go to shop they say , now all these items are 10 % discount sale . I am happy I will pay 90 dollar instead of 100 . That’s the meaning of discount in my understanding . When additional costs are incurred how then it be known as discount ?? Horrible notations of finance 😞😢😖
@@jkj1459 because depreciation and amortization are deducted as expenses from net income in the income statement, but they are no cash expenses because you don't pay cash for it as for example your equipment depreciates. Because of this, they have no negative affect on your cash flow, but because they are already deducted from net income they should be added back.
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this is the simplest and most clear explanation of this concept of Discounted Cashflow Analysis I've seen till now. Hats off!
THE PENNY JUST DROPPED. I'M DOING AN ASSESSMENT AND I'VE BEEN TRYING TO WORK OUT THE DISCOUNTED CASH FLOW FOR THE PAST 2.5 HOURS! THANK YOU SO MUCH I FINALLY GOT IT FROM YOUR EXPLANATION!
I’m a senior finance student and this was a excellent description of the three different topics. I understood them on the surface , but now I really understand how they work with one another
Explained a difficult topic in a very simple way. Very helpful, Thank you!!
Thanks so much, you truly are a gem. Perfect pasing on the vid so it's not going to fast. briliant!
Probably the best explanation I've heard. Thank you
Fuck you many years ahead. Mental ill, incapacitated and a logo that worth nothing.
Very clear and easy to follow, thank you.
best explanation thus far!
Beautifully explained! thank you :)
Thank you for the explanation, I was having some trouble in understanding the DCF approach
You’re a legend with this explanation
Thank you so much for the clear explanation! :)
Excellent explanation!!!!
Everyone in the comments seem to be from the finance world and here i am an architect who for some reason needs to learn this for my masters in sustainability 😂
Super helpful video.
Great explanation
How did you get to 6% for the discount rate from the discount factors?
Is it to do with the firm’s cost of capital, how much it costs the firm to borrow? M.
nice explanation, if you make a video with WACC and CAPM, would be awesome.
Thank you!
Dear Friends,
I have a case of capital budgeting:
Example: I want to build new factory, I know the build cost is CAPEX budget and cash outflow.
When the factory begin run, I need purchase raw materials, purchase labor, purchase overhead (water, electric,etc) to manufacture finished goods.
I know this costs depreciation cost from this factory is OPEX cost.
Question: With the capital budgeting, I will collect the CAPEX and OPEX inside a plan or seperate plans?.
Capital budgeting need to OPEX cost to run and examine effeciency of this factory, right?.
Could you help?. Thank you.
i thought a dollar today is worth more than a dollar tomorrow so why is £1000 in 4 years worth £792 today? (the example used in the video)
nope, still, missed it
Missed what?
@@Franckzzzu missed it
Hey Mate! I think you made a mistake in the TMR calculations. When calculating the HPR(2) you forgot to multiply the beginning value, dividend paid and ending value by 2. The HPR(2) should be 15.79% which makes the TMR equal to 17.87% 👍🏼👍🏼
Helpful!
When i go to shop they say , now all these items are 10 % discount sale . I am happy I will pay 90 dollar instead of 100 . That’s the meaning of discount in my understanding .
When additional costs are incurred how then it be known as discount ??
Horrible notations of finance 😞😢😖
Dear friends, I don't clear and I have a question : How to determine the cash flow in the DCF method?. Thank you.
Net Cash flow = Net profit + Depreciation + Amortization - average annual capital expenditure. You can find these in Cash flow Statement.
@@harishah8794 , thank you
Why depreciation added though it’s a depreciating negative thing ??
@@jkj1459 because depreciation and amortization are deducted as expenses from net income in the income statement, but they are no cash expenses because you don't pay cash for it as for example your equipment depreciates. Because of this, they have no negative affect on your cash flow, but because they are already deducted from net income they should be added back.
How to determine discounting rate?
by wacc
many thanks
Is it just me, or do the hand drawings at 04:33 have unusually long thumbs?
Focus on what's important
Thanks
thumbs up :)
Martin Barbara Harris Susan Gonzalez Anthony
you managed to bore me
Yang milih allah like 800 ya yang milih dajal abaikan saja