Discounted Cash Flows on BAII Plus - NPV, IRR, PB, DPB, PI - DCF - Capital Budgeting

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  • Опубліковано 1 жов 2024

КОМЕНТАРІ • 11

  • @macroeconomics_smith
    @macroeconomics_smith 7 місяців тому +2

    Thank You Boss!! Appreciate everything about Your videos!!!

    • @joshemman
      @joshemman  7 місяців тому +1

      Thanks, Tokhir. You made this happen.

    • @munaalsaadi9738
      @munaalsaadi9738 7 місяців тому

      @@joshemmanplease I need your email , I couldn’t find it

  • @deepa-v9v
    @deepa-v9v 7 місяців тому

    Design 1 would require an up-front manufacturing cost of $15,000,000 and will cost $2,500,000 per year for 3 years to swap out the engines in all its current submarines. Design 2 will cost $20,000,000 up front, but due to a higher degree of compatibility will only require $1,500,000 per year to implement. MARR is 10 percent/year. how would you do IRR analysis here? considering negative cashflows !

    • @joshemman
      @joshemman  7 місяців тому +2

      It is not possible to calculate IRR if you don’t have both positive and negative cashflows. IRR is the rate that makes NPV = 0. Since NPV = PVin - PVout, you will not be able to arrive at a zero if you only have one of PVin and PVout. In essence, there's no rate at which the negative cash flows will be offset by positive cash flows.

    • @deepa-v9v
      @deepa-v9v 7 місяців тому +1

      Thank you so much @@joshemman

  • @orobleh77
    @orobleh77 7 місяців тому

    When CF1 of 10,000, can you enter F1 as 2, since there are two 10,000

    • @macroeconomics_smith
      @macroeconomics_smith 7 місяців тому

      I guess no, you'll get wrong NPV

    • @macroeconomics_smith
      @macroeconomics_smith 7 місяців тому +1

      if your Cash flow is consecutive, then you can make it as F2, but on the video the second 10.000$ is on the fourth year of a project

    • @joshemman
      @joshemman  7 місяців тому

      Well said!

  • @munaalsaadi9738
    @munaalsaadi9738 7 місяців тому

    Could you please tell me how I get your email?