If you're using a business calculator (those without parenthesis and exponents), you can compute the IF by 1.) Input 1.14 in your calculator 2.) Press the divide (÷) key twice 3. ) Press the equal sign once for year 1, twice for year 2, thrice for year 3 and so on..
Hello, is it possible to have 2 different cash flows for the same year? eg if the question says 3rd year had 960 000 and the machine had a value of 500 000 at the end of the third year
The Gap is considering buying cash register software from Microsoft so that it can more effectively deal with its retail sales. The software package costs $750,000 and will be depreciated down to zero using the straight-line method over its five-year economic life. The marketing department predicts that sales will be $600,000 per year for the next three years, after which the market will cease to exist. Cost of goods sold and operating expenses are predicted to be 25 percent of sales. After three years the software can be sold for $40,000. The Gap also needs to add net working capital of $25,000 immediately. The additional net working capital will be recovered in full at the end of the project life. The corporate tax rate for the Gap is 35 percent and the required rate of return relevant to the project is 17 percent. What is the NPV of the new software?
The formulae for future value is: Fv = p(1+r)^n So if you make “P” the subject of formula you should have: P = Fv / (1+r)^n Simplifying it more using indices you will have: P = FV * (1+r)^-n
Interest factor formula is (1+r) to the power of negative t(time).So using the example you say (1+0.14(from 14%)to the power -1 or -2 or -3 etc depending with the year you calculating for so for year 5 negative T is negative 5.You get it ??? Remember to remove a negative on an exponent you say :eg for year 5 =1 divided by (1+0.14) to the power of 5.
Wow! Finally I'm going to pass the exam tomorrow..thank you
You made it so simple and I am writing tomorrow thank you
This was very helpful, i did this question following your steps in my exam and i got it😊 thank you sir
This has helped me SOOOOO much, thank you - THANK YOU!!!!
Extremely helpful for my Petroleum Economics Exam. God bless you!
Thanks, I've been confused about this for a while now
Nice and simple tutorial. Thank you!
If you're using a business calculator (those without parenthesis and exponents), you can compute the IF by
1.) Input 1.14 in your calculator
2.) Press the divide (÷) key twice
3. ) Press the equal sign once for year 1, twice for year 2, thrice for year 3 and so on..
This method is way easier
genius _ thank you so much both of you guys
Woow ,this was very easy. I've been struggling with NPV 😢
Me too😂😂😂🤦🏾♂️🤦🏾♂️🤦🏾♂️so easy🙏🏾🙏🏾bless him….
great explanation THANK YOU
Thank you sir! This was very helpful to me.
Thank you so much sir this is the best explanation I found here. Hope you upload more soon.
Very helpful. Thank you for sharing!!!
Thank you very much, this video was very helpful
Very helpful. Thank you, sir.
This was very helpful,thank you so much
Good job kbx it's understandable
Thanks 🙏
Thank you so much sir,I love your work,very very helpful
Very helpful, I can now do my Case study
Thank you for the simple explanation
Useful thank you
THANK you so so so much you have explained that i have understood thank you ❤❤
thank you, I finally understand
thanks. It was very helpful for me.
Helpful 📌💯✔️✔️😊
Cheers boss, vanveka
thank now its clear.
Mr Nyirenda you are very good sir.l have understood the lesson.sir do also presentation on cost and absorption accounting.
Very helpful thanks u sir
Thank you so much for this
thanks very much, it helped me
thank you uncle
Thank you very much professor
Tnx Sir very helpfull ❤🙏
God bless you sir
understood🔥🔥🔥🔥🔥🔥
Thanks!!
thanks a lot
Thank you very much
Thanx much🙏
Nice explanation. However, how do you arrive at the cost of capital (Df)%, in an event that you are not given in the question ???
Thanx
Thanks..
Thanks much sir🙏🙏
Wow thank u Sir. Any video under irr
Thank you sir sooo muchhhh
Thank youu
The simplest in all
thank you😭🤍
I will be glad to get a reply.. how did you get your discounting factor..
Or anyone can help
Thank u
Thanks brother i didnt know it was this simple
i love u bro
Hello, is it possible to have 2 different cash flows for the same year? eg if the question says 3rd year had 960 000 and the machine had a value of 500 000 at the end of the third year
thankyou
Vevy enfo!
❤
This is error well explained.
how you get (1+14) for the answer for year 1 untill 5? I'm dont understand and know how to calculate
Very helpful. Thank you
Is the irr for the project 26%?
The Gap is considering buying cash register software from Microsoft so that it can more effectively deal with its retail sales. The software package costs $750,000 and will be depreciated down to zero using the straight-line method over its five-year economic life. The marketing department predicts that sales will be $600,000 per year for the next three years, after which the market will cease to exist. Cost of goods sold and operating expenses are predicted to be 25 percent of sales. After three years the software can be sold for $40,000. The Gap also needs to add net working capital of $25,000 immediately. The additional net working capital will be recovered in full at the end of the project life. The corporate tax rate for the Gap is 35 percent and the required rate of return relevant to the project is 17 percent. What is the NPV of the new software?
I’m not getting it oooo
Cuz I’ve tried doing (1+r)^2 is not giving me that answer
Same
Why is it raised to the power negative time(-t)? Can u explain pls
The formulae for future value is:
Fv = p(1+r)^n
So if you make “P” the subject of formula you should have:
P = Fv / (1+r)^n
Simplifying it more using indices you will have:
P = FV * (1+r)^-n
How is 31,000 multiplied by 1 = -31000?
How to calculate pv factor clearly otherwise you don't confuse the generation
anayone can you teach me how it get?
You didn’t show how you calculated for the interest factor
I have been trying to figure this out myself for the past 10 minutes and it is frustrating. He did not show.
I am not understanding this solution
But how are you getting those values like 0.8772
He did it wrong
Because first value is 0.909
I'm not understanding on how you are calculating the interest factors?
I'm not finding the same fingers .
Me too can he atleast explain how he got it
Interest factor formula is (1+r) to the power of negative t(time).So using the example you say (1+0.14(from 14%)to the power -1 or -2 or -3 etc depending with the year you calculating for so for year 5 negative T is negative 5.You get it ???
Remember to remove a negative on an exponent you say :eg for year 5 =1 divided by (1+0.14) to the power of 5.
U don't pay attention 😂
Your written letter is not clear
Kaala jaamun
Ur interest factor is confusing
Sir please speak some sentences in Hindi .....
This answer is wrong, i think the addition was not done properly
Could not understand properly due to English continue speaking kindly speak in Hindi also
Wrong PV sumup
It's not interested lesson bcoz you are not explain any more
Total of npv is wrong its 75290 and 14% of 6th one is also wrong its 0.4555
What is Formula for it
Pls how do you calculate the 14% I don’t get it here 😢
@@okedarasimi8332 it’s given
Very not helpful at all how did u get the year 2
True ahhh
Not helpful 😢
First understand then teach , a bitter taste of Teaching
Bokkalaga vundi
Sir apke padhane ka tarika bhut kharab hai chng kro plzz 😢❤
not helpful - you didn't show how you do (1+r) discount calculation
(1+14%)rise to power-de year
He did.
@@ezelovelynifunanya6377 yes that's true
He did watch the video again
You have to use a compund intrest table...
Not helpful
Not helpful😢
Very helpful thank you
Thank you so much, it was very helpful