I'm trying to wrap my head around this. Are the raw cashflows for each period in year-zero-dollars? And the NPVs for each period are in year-zero-dollars as well, only they are discounted to account for the time-value factor?
Youre AWESOME!!!! Super cool video and great attitude. I just want to request more BEGGINER BUSSINESS videos. I am starting to take business classes and have never seen some of the math before! please help!
It's a little funny seeing this as an instructional video but, I get it's purpose. I'd like to see a discount rate video. It's probably somewhere on your channel right? Good job!
If you were my teacher, I would stay after class to get some extra credit ;).... In all seriousness, your videos have been really helpful to better understand the content of my online Corporate Finance class.
This video is brilliant. Thank you so much. I read a book that stated that a positive NPV means that the ROIC (Return on Invested Capital) is greater than the WACC - ie value is created. While I can see this in terms of values, ie the return (present net positive cashflows) is greater than the cost (investment in Year 0), I struggle to understand the rate perspective of value creation in a NPV calc, ie how the ROIC rate of the project is greater than the WACC rate. Is it possible to explain this using simple Maths?
Goal of management: maximize shareholder value... screech! Not so fast. Read the paper on the latest international business forum. Big business has recognized the dangers of ignoring responsibility to its employees, the environment and country. Major companies have pledge to reform their inward focus. Now carry on...
Dear Friends, I have 2 questions: 1/ Can I create capital Budgeting include only 100% working capital, no fixed assets with project life is 5 years?. 2/ When I create and review the capital Budgeting (example: build new factor or open new 100 shops), I can examine the cost of BOD (Board of directors) is a relevant cost of this project?. Thank you.
Dear Friends, I have a questions: 1/ In the Capital Budgeting for 5 years, ABC company spent 500 million USD and borrowed 200 million USD from the bank. I want to calculate the break even point of of the capital budgeting. How do you do?.
Well done! I'm still stuck on the discount rate here, as I'm not sure if you mean the cost of borrowing the initial capital, or the ROI. Or something else completely! Thank you!
Hi, have a confusion on this, a machine cost 60000. it works for 5 years generating a cash flow of 12000. it can be sold for 20000 at the end. discount rate 8%. calculate NPV. ChatGPT To calculate the Net Present Value (NPV) of the machine given the provided information, we'll use the NPV formula: NPV≈−1,792.59 So, the Net Present Value (NPV) of the machine is approximately $-1,792.59. Since NPV is negative, it indicates that the investment in the machine may not be economically favorable when compared to the 8% discount rate. why its a negative NPV when I check with chat GPT? Thanks.
Very concise-I recommend this course as an evening tutorial to better understand any finance/accounting course on NPV.
WOW. You have no idea how thankful I am for your explanation of this concept!
Glad it's helping!
I'm in grad school right now and this has helped so much with my finance class!
Thank you!
Marcus Suarez I’m thinking of getting a masters of science in finance. Any advice , I’m in last semester of undergrad
Very interesting. Probably the best lecture out here. No cap.
thanks bro!
I would recommend you show all the calculation, hence it will ease for students like us to understand
Thank you
Very concise, clear and easily understandable manner. Thanks a lot lecturer
Seriously thank you for doing these videos you are a legend!
that was great, wish you were my finance professor :)
All your videos are incredibly helpful because they’re so easy to follow. If there a specific video on discount rate?
Great my dear bro....love you.. was busting ma head to understand this
Very helpful, thank you
Fluent in speech. Well mannered. Classy. Educated. Handsome.Whose husband is this lol 😂
Imagine a MAN saying what you posted! "Whose WIFE is this?" Unless you think spouses should OWN each other, please check your sexism.
thank you, I found out your channel recently, it is very helpful.
Excellent explanation!!
Excellent presentation
My dear you are so brave with your explanation. Would you explain chapter 6 on finance.. God video to see on line.
I'm trying to wrap my head around this. Are the raw cashflows for each period in year-zero-dollars? And the NPVs for each period are in year-zero-dollars as well, only they are discounted to account for the time-value factor?
Very informative 👏 👌
this was helpful. Thank you so much
Youre AWESOME!!!! Super cool video and great attitude. I just want to request more BEGGINER BUSSINESS videos. I am starting to take business classes and have never seen some of the math before! please help!
It's a little funny seeing this as an instructional video but, I get it's purpose. I'd like to see a discount rate video. It's probably somewhere on your channel right? Good job!
I would turn up to every class
I really hope you mean "turn up to" and not "turn up in" loll :P
If you were my teacher, I would stay after class to get some extra credit ;).... In all seriousness, your videos have been really helpful to better understand the content of my online Corporate Finance class.
Imagine your response if you were to read a MAN posting this message to a WOMAN presenter. Sounds creepy, doesn't it? Sexism is sexism.
wonderful video man!!!!!
This video is brilliant. Thank you so much. I read a book that stated that a positive NPV means that the ROIC (Return on Invested Capital) is greater than the WACC - ie value is created. While I can see this in terms of values, ie the return (present net positive cashflows) is greater than the cost (investment in Year 0), I struggle to understand the rate perspective of value creation in a NPV calc, ie how the ROIC rate of the project is greater than the WACC rate. Is it possible to explain this using simple Maths?
Goal of management: maximize shareholder value... screech! Not so fast. Read the paper on the latest international business forum. Big business has recognized the dangers of ignoring responsibility to its employees, the environment and country. Major companies have pledge to reform their inward focus. Now carry on...
NPV equals present value of future cash flows minus initial payout.
Thank you so much!
Dear Friends,
I have 2 questions:
1/ Can I create capital Budgeting include only 100% working capital, no fixed assets with project life is 5 years?.
2/ When I create and review the capital Budgeting (example: build new factor or open new 100 shops), I can examine the cost of BOD (Board of directors) is a relevant cost of this project?.
Thank you.
Great work
on all your clips, I would go into a business with you
Thank you so much!!
Very clear...
Best lecture!
Dear Friends,
I have a questions:
1/ In the Capital Budgeting for 5 years, ABC company spent 500 million USD and borrowed 200 million USD from the bank. I want to calculate the break even point of of the capital budgeting. How do you do?.
Do you have a play list for all math just related to real estate stuff ?
Thank you. Really informational.
I've got a doubt though.
Is the discount rate same as inflation rate?
Don Francis it can be a risk free rate or a rate of return of a similar project
How did you get (1- 1/1.08 to the 5 power)?
it is really clear.
May I know why there is 8% discount please
Thank you!
no worries!
please we need by using formula FV of Multiple Cash Flows
Thank you!!!!
you're welcome :)
Fine as long as there's no tax or CCA rate in the question
Leadership 👌🏾
what determines the discount rate?
I think you pick it up
Discount rate= interest rate what i=d/1-d is this right ?
thank U so much..
Non of my questions are worded like this though
Does the Magnitude of NPV matters?
Guillermo Cortés Bigger is better
GREAT
This is helpful thx
No worries :)
Wouldnt 60k invested at 8% earn 88,159 in 5 years which is more than the 80,000 made in 5 years of the machine
lol he looks like Juan mata
💯💯💯
thanks for the education and videos. You are certainly appreciated! ttytytytytyt
Well done! I'm still stuck on the discount rate here, as I'm not sure if you mean the cost of borrowing the initial capital, or the ROI. Or something else completely! Thank you!
💎
Explicit
Hi, have a confusion on this,
a machine cost 60000. it works for 5 years generating a cash flow of 12000. it can be sold for 20000 at the end. discount rate 8%. calculate NPV.
ChatGPT
To calculate the Net Present Value (NPV) of the machine given the provided information, we'll use the NPV formula:
NPV≈−1,792.59
So, the Net Present Value (NPV) of the machine is approximately $-1,792.59. Since NPV is negative, it indicates that the investment in the machine may not be economically favorable when compared to the 8% discount rate.
why its a negative NPV when I check with chat GPT?
Thanks.