Net Present Value (NPV) explained

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  • Опубліковано 11 січ 2025

КОМЕНТАРІ • 506

  • @TheFinanceStoryteller
    @TheFinanceStoryteller  4 роки тому +42

    Enjoyed this video? Then please subscribe to the channel, and let's review what WACC means and how WACC is calculated: ua-cam.com/video/1O-DbtVueMw/v-deo.html

    • @madonnasanjose2777
      @madonnasanjose2777 2 роки тому +2

      1.2 came from?

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      @@madonnasanjose2777 For illustration purposes, I chose a dramatically high 20% as the discount rate. So 1 + 20% = 1.2.

    • @avronilbanerjee5302
      @avronilbanerjee5302 2 роки тому +1

      @@madonnasanjose2777 100 rupee today 20% interest for 1 year
      next year the value would be 100 + 20% of 100 = 120
      or simply 100 * 1.2 = 120
      if future value is 120 the the initial value is x (assume)
      so x + 20 % of x = 120
      x + 20x/100 = 120
      1.2x = 120
      x = 100
      now you understand meaning of 1.2?

    • @aamirnagina7479
      @aamirnagina7479 Рік тому

      ​@@avronilbanerjee5302 thnx bro

    • @zaairvasquez377
      @zaairvasquez377 11 місяців тому

      how did you get 1.2, if you divide 20% by a hundred it is 0.2.

  • @NatashaRones
    @NatashaRones Рік тому +83

    I legit almost cried when I did the calc on a project and came up with the right answer after watching this! THANK YOU!!!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому +2

      Well done!!!! Happy to help. Related concepts in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

    • @pogbarcr5376
      @pogbarcr5376 11 місяців тому

      I legit almost orgasmed over my whole project and my friend sitting behind it.

    • @Mi.Shi.G
      @Mi.Shi.G 9 місяців тому +1

      Thank you so much for these videos!

  • @sully5810
    @sully5810 3 роки тому +203

    Best simple explanation of a concept so many professors over-complicate. Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +4

      Glad it was helpful, Sully! Check out my videos on IRR and WACC as well in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @combinedeffects4799
    @combinedeffects4799 10 місяців тому +17

    This is why teachers over the world are in such a noble profession. When you take any concept and explain it in such detail but with such ease of understanding - it is such a beautiful thing.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  10 місяців тому

      Thank you very much for the kind words. 😊 Have a look at the related video on IRR as well, I think you will enjoy that too: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @niffty5087
    @niffty5087 3 роки тому +84

    Just what I was looking for. Complex idea explained clearly in 5 min with an example I could replicate. Thank you so much!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +2

      Wonderful to hear that! I use the same example in discussing IRR, payback period, etc.: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @rahulvignesh2775
    @rahulvignesh2775 9 днів тому +1

    You are amazing. This is the simplest explanation for NPV I’ve ever seen. And trust me, I have at least seen 10 different explanations in the last 4 years

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  9 днів тому

      Thank you very much for the kind words, Rahul! Happy to help. I have explanations of other capital budgeting techniques like payback method, IRR, profitability index, crossover rate as well in this playlist: ua-cam.com/play/PLKbmcnUUQMlk1grOyCUm3AZZW_5cQ58yw.html

  • @menzixulu3485
    @menzixulu3485 6 місяців тому +3

    Wow, i happy to have watched this video. No teacher and textbook has explained it better than you Sir! Explained in a nice and simple way. I will never forget this again. Menzi from South Africa.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  6 місяців тому

      Thank you for the kind words, Menzi! Greetings back from Philip in the Netherlands. If you want to learn about related concepts like IRR, they are all in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @only1brum
    @only1brum 3 роки тому +19

    You are the first person, out of many, to simplify this for me. I cannot thank you enough!!!!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      I am so happy to hear that!!!! Check out the related videos as well on IRR and WACC on this channel. ;-)

    • @only1brum
      @only1brum 3 роки тому +1

      @@TheFinanceStoryteller I will do, thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Just another thought.... Some people start understanding concepts like NPV and IRR by having a clear definition and explanation, others learn by doing. If you want to play around with the calculations in Excel, then here's the way to do it: ua-cam.com/video/jQ_NDQ2qVVA/v-deo.html

    • @only1brum
      @only1brum 3 роки тому +1

      @@TheFinanceStoryteller That is perfect, as I need to use Excel for my assignment. I really appreciate your help.
      ENORMOUS thumbs up 👍

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      @@only1brum Be careful with the NPV formula in Excel. It's structured a bit different from what you might intuitively expect. For example, I would use the following formula to calculate Net Present Value.... =B2+NPV(B3;C2:F2) with B2 referring to the initial investment, B3 referring to the discount rate or WACC, and C2 through F2 to the nominal benefits in years 1 through 4.

  • @fionastephen8720
    @fionastephen8720 11 місяців тому +3

    🤯 you've explained this more clearly in 5minutes than a teacher in a class room and hours spent on subsequent revision sessions. Thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  11 місяців тому

      Wow, thanks! Have a look at the related videos on IRR and WACC as well ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB and please spread the word to fellow students!!!

  • @sammiemoeke-campbell6498
    @sammiemoeke-campbell6498 3 роки тому +3

    Re-watching 4 hours of lectures only to find this. Explains FV, PV and NPV so much better within 5 minutes!!! LIFESAVER

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Happy to help, Sammie! Here's the link to my playlist covering the related concepts IRR, WACC, profitability index, etc. as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

    • @sammiemoeke-campbell6498
      @sammiemoeke-campbell6498 3 роки тому +1

      @@TheFinanceStoryteller Thank you! have saved all of your playlist to my library :)

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      @@sammiemoeke-campbell6498 Please spread the word to anyone that might benefit from it. :-)

  • @zamangcobo4762
    @zamangcobo4762 9 місяців тому +2

    After watching two videos the whole night, the following morning I decided to revisit this NPV & I came across your video, OMG easiest explanation ever!!!!🥰

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  9 місяців тому

      Wonderful to hear that! Thank you for the kind words. I have videos on related topics like IRR as well for you: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @davidwedderburn9573
    @davidwedderburn9573 Рік тому +2

    This 5 minute video has solved two years of headaches. Thank you!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Happy to help! Please spread the word. Related videos on IRR and WACC available as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQB

  • @gabrielkaras1858
    @gabrielkaras1858 Рік тому +2

    This is the only clear explanation of PV on the internet! Thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Wow, thanks! Happy to help. Discussion of related concepts like IRR and WACC in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @rachelfortier802
    @rachelfortier802 2 роки тому +5

    THANK YOU. I struggled with this in college. I struggled the first time I took my licensing exams. I'm struggling again the second time I'm taking them. I understand it now!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Happy to help, Rachel!!! Related videos on IRR, WACC etc. in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @agnesbdunlap
    @agnesbdunlap 4 місяці тому +1

    This is the most simplified version my brain can understand. Thank you!!!! I came up the right answer using your version!!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 місяці тому

      Nice to hear that, Agnes! 😊 Have a look through my playlist on NPV, IRR, WACC, etc. There might be other useful videos for you in there: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @Rokiotop900
    @Rokiotop900 13 днів тому +1

    The best video of net present value in history

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  13 днів тому

      Thank you for the kind words!!! Video on related topics like IRR, payback period, profitability index, can be found in this playlist: ua-cam.com/play/PLKbmcnUUQMlk1grOyCUm3AZZW_5cQ58yw.html

  • @MichaelCiszewski-cl8fh
    @MichaelCiszewski-cl8fh 2 роки тому +1

    Coming from a school with no undergrad business program, this is the best way for me to understand concepts when preparing for Investment Banking and Private Equity.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Hello Michael! Welcome to the channel, and thank you for the kind words. Have a look around at videos and playlists, I hope you will find a lot of useful content here. And feel free to ask questions in the comment sections of the videos, if anything needs clarification.

  • @slayermeb
    @slayermeb 2 роки тому +1

    Something so simple to explain, yet teachers don't know how to explain... Thanks!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Happy to help! Related concepts like IRR and WACC are in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @abdullahimohamed8012
    @abdullahimohamed8012 3 роки тому +2

    i know you have heard/read this kind of comment before, but you made a complex finance so easy. Thank you!!

  • @heromail2903
    @heromail2903 11 місяців тому +1

    After watching this video I understood PV, FV and NPV perfectly. This really helps ❤

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  11 місяців тому +1

      I am so happy to hear that!!!! Please spread the word, and have a look at the related videos on IRR, WACC, etcetera as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @marcio1745
    @marcio1745 Місяць тому +1

    This is the best explanation in the entire universe. Thank you, sir

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Місяць тому

      Wonderful to hear that. Thank you for the kind words. Please share with friends and colleagues!

  • @tp5532
    @tp5532 2 роки тому +3

    This is the best explanation of NPV! I was struggling, thank you so much!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad it helped! Have a look at the related videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @filly1up
    @filly1up 3 місяці тому +1

    Ive been studying economics, business and finance for 5 years since i was in high school till now and ive had many teachers teach me this. But the way i understood it now more then ever in 5 minutes is crazy

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 місяці тому

      Thank you for the kind words! Please share the video/channel with friends and colleagues. Have a look at the related videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @suw3208
    @suw3208 4 роки тому +8

    A complex finance idea made so simple and easy to do. Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Glad it was helpful! Thank you for watching and commenting. I have a few more videos for you that could be of interest on related terms like payback, IRR and WACC: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @hasnaahatem3421
    @hasnaahatem3421 3 роки тому +4

    The best explanation I've ever had. Many thanks

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Wow, thanks! Nice to hear that, Hasnaa! Here's a link to the playlist covering related concepts (IRR, payback, crossover rate, WACC): ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @elainejjj
    @elainejjj Рік тому +1

    Thank you sir! I struggle a lot to get how this magic works, and you make it much easier

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому +1

      Happy to help! More good stuff in the NPV IRR WACC playlist covering a lot of related topics: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @RahulSharma-cv2rq
    @RahulSharma-cv2rq 3 роки тому +3

    Thanks for the video , it is very helpful . You made me understand the concept what other people can't.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you, Rahul! Happy to help. I have related videos on IRR, WACC, and other concepts as well on my channel. :-)

  • @janifahbadio6684
    @janifahbadio6684 4 роки тому +3

    Of all the videos i watched this is the most easy to understand. Thumbs up

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      It makes me so happy to hear that, Janifah! Thank you for watching and commenting. I have more videos on related topics like IRR and WACC, hope they help as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @aerobyrdable
    @aerobyrdable 4 роки тому +47

    You don't fool me, Mr. S Connery. I know it's you, back there

  • @jamesperry3837
    @jamesperry3837 5 років тому +35

    _This is _*_the best_*_ explanation of FV PV NPV_
    _I have seen on UA-cam._ TᕼᗩᑎK YOᑌ

  • @nirbhay.8400k
    @nirbhay.8400k 3 роки тому +6

    Life-saving explanation just before exam!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Just in time!!! Hope the exam went well.

    • @nirbhay.8400k
      @nirbhay.8400k 3 роки тому +3

      @@TheFinanceStoryteller Of course! Got a question on IRR and thanks to your video on IRR, I got it right.

  • @Catalinbut
    @Catalinbut 6 місяців тому +1

    Thank you for this

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  6 місяців тому

      My pleasure, Catalin! Related concepts like IRR and WACC are discussed in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB
      Feel free to connect on Linked In!

  • @dalilalee
    @dalilalee 2 роки тому +1

    I find I'm a visual learner, this video is great and simple to understand!!! Thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you, Laiping! More videos on related topics like IRR and WACC over here in this playlist: ua-cam.com/video/N-lN5xORIwc/v-deo.html

  • @annoyingprecision2487
    @annoyingprecision2487 Рік тому +5

    Clear, concise, succinct and intuitive. Thanks a ton for the video. Liked & subscribed.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Thank you very much for the kind words! Related videos on IRR, WACC, etc in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @rajkumaarb
    @rajkumaarb 2 роки тому +2

    Wow! NPV explained in a very easy to understand manner. Thank you!

  • @sasamuraki
    @sasamuraki 2 роки тому +1

    Thank you so much, first person to explain it in a simple way. God bless.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Happy to help! Related concepts like IRR and WACC can be found in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @strastra7306
    @strastra7306 2 роки тому +2

    Precisely the explanation i was looking for, for my exam tomorrow thanks!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Oh wow, that is perfect timing then! More on related concepts like IRR and WACC in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html Wishing you lots of success in the exam.

    • @strastra7306
      @strastra7306 2 роки тому +1

      @@TheFinanceStoryteller Great, thanks!

  • @kushmalatariq2701
    @kushmalatariq2701 2 роки тому +1

    very very well explained in a simple way only take 5 minutes to understand great

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you for the kind words! I have done the same for related concepts like IRR and WACC in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @JazmynBrantley-gx3ur
    @JazmynBrantley-gx3ur 2 роки тому +1

    This video was so very helpful & simple. I have always struggled in anything math& Im now in college and still struggle but this video just helped me understand math like i've never understood it before. thanks so much sir.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      I am so very happy to hear that!!!! Yeah, math is a sometimes complicated yet very important part of life. Well done in looking for additional resources to master this. I have a playlist with related topics like IRR and WACC that could be useful for you as well, in particular the one called "WACC vs IRR" could be a breakthrough in your mathematical understanding: ua-cam.com/video/ZuH_q5crAWg/v-deo.html
      Please share with your fellow students, and let's ace that upcoming test. 😎

  • @konstancyja82
    @konstancyja82 5 років тому +6

    Soo usefull for my PMP learning!!! Very well explained, thank you!

  • @mikelarue7750
    @mikelarue7750 Рік тому +1

    GREAT VIDEO. So much better explanation than text book.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Happy to hear that, Mike!!!! Have a look at my videos about IRR, WACC, etcetera as well. 😎

    • @mikelarue7750
      @mikelarue7750 Рік тому +1

      @@TheFinanceStoryteller oh yes. I put it on my calendar to watch them today. Went over WACC last chapter of the text book, it's still a little fuzzy.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Yeah, WACC is a questionable concept. Extrapolating from past averages, whereas the future often does not resemble the past at all. Anyway, I discuss the concept as well as my frustrations with it in this video: ua-cam.com/video/1O-DbtVueMw/v-deo.html The heuristic-based (rule of thumb) hurdle rate is less pretentious and far easier to understand: ua-cam.com/video/8EyFLdOTuHU/v-deo.html

  • @dhavalkuvadia5921
    @dhavalkuvadia5921 11 місяців тому +1

    Best and simplest explanation by far

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  11 місяців тому

      Wow, that is a wonderful compliment. Thank you so much! Have a look at the related videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @EsraİL-j4f
    @EsraİL-j4f 4 місяці тому +1

    Truly truly truly a story teller indeed !

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 місяці тому

      Thank you! Videos on related topics like IRR and WACC are available in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @teciataylor
    @teciataylor Рік тому +1

    Great breakdown I had to watch a few videos to find the best one! Thank you!!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Happy to help! If you want to see how NPV reacts to changes in the input variables, then watch my video on NPV in Excel ua-cam.com/video/jQ_NDQ2qVVA/v-deo.html or my NPV IRR payback scenarios story ua-cam.com/video/1ZTIwmn1Cm0/v-deo.html

  • @alekhyala
    @alekhyala Рік тому +1

    Finally found a video that explains in a simple and effective way. 🙌

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Glad it was helpful! If you liked this video on NPV, you will probably also enjoy my discussion of related concepts like IRR and WACC: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @mexavier3888
    @mexavier3888 3 роки тому +4

    Thank you very much, it helps me a lot during this pandemic (online class)

  • @kimiblack21
    @kimiblack21 3 роки тому +1

    Omg, you have explained the simplest way! Thank you

  • @mohamednazaralali4441
    @mohamednazaralali4441 2 роки тому +1

    Thank you very much for your usual support, it is very helpful, you are gifted in simplifying the math and finance!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad to hear that, Mohamed! I have videos on related topics like IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @ekaterinavolkova4348
    @ekaterinavolkova4348 Рік тому +1

    I've understood all. I'm really grateful for your video.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Excellent! Here's the link to the playlist that might be useful for you as well, explaining related concepts like IRR and WACC ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @sergioesamayoa
    @sergioesamayoa Рік тому +1

    Excellent example for those who haven't get financial math training.

  • @speedy_o0538
    @speedy_o0538 2 роки тому +1

    Thank you, I just spent 2 hours replaying a lecture recording from Queensland University of Technology in Australia and couldn't understand this simple concept. I watched your 5min video once and I now understand it. SOMEBODY PLS EXPLAIN TO ME WHY UNIVERSITY STILL EXISTS.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Wow, I am so sorry to hear that the quality of that lecture was so poor. Here's a link to my playlist covering related topics IRR, WACC, etc., as they are probably up next for you to study: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html
      If you want to ask the university for a refund, and then send the money to me, you are more than welcome. 😎 ua-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin

  • @MikeOtranto
    @MikeOtranto 9 місяців тому +1

    Simple and comprehensive. Great content!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  9 місяців тому

      Nice to hear that! Happy to help. Have a look as well at my videos on IRR, WACC and other capital budgeting techniques: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @vikramdamodharan123
    @vikramdamodharan123 Рік тому +1

    Best video to understand NPV. Thanks 👍

  • @sia-ph5qf
    @sia-ph5qf Рік тому +2

    Why do professor actually get paid when they can teach you nothing in 10 hours about NPV but a guy on UA-cam explains the whole theory in 5 min. Thank you!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому +1

      One of the great mysteries in life! 😉 In this playlist, I cover related concepts like IRR and WACC, which are probably next up on your curriculum: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @leomhikaell2337
    @leomhikaell2337 2 роки тому +1

    Sir, Thank youuuuu highly appreciated man! now i know that i am on the right track with this concept

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      That is wonderful to hear!!!! Some more examples of NPV and related concepts in this playlist: ua-cam.com/play/PLKbmcnUUQMlkkCqQs7M_b6ktTDLITcRoG.html

  • @MultiLex101
    @MultiLex101 4 роки тому +2

    Jesus christ this man is good, subscribed and I look forward to more of your videos my friend

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому +1

      Hahaha! Thanks for the compliments! I think I have a bit more than 24 hours' worth of content on the channel, so plenty for you to watch. Including more NPV related stuff such as the profitability index and the crossover rate: ua-cam.com/video/Md5ocNqKHq8/v-deo.html

    • @matlhogonolofrancis7806
      @matlhogonolofrancis7806 3 роки тому

      Where does 1.2comes from

  • @93papai
    @93papai 3 роки тому +1

    very simplistic and effective explanation!! loved it

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Happy to hear that! I have videos on WACC, IRR and other related concepts as well: ua-cam.com/play/PLKbmcnUUQMlkkCqQs7M_b6ktTDLITcRoG.html

  • @kumkumvijay
    @kumkumvijay 2 роки тому +1

    Great! amazingly simple and clear explanation !

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Many thanks! Here's the link to a playlist with related concepts like IRR and WACC ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @bubdiola12
    @bubdiola12 Рік тому +1

    You made it so intuitive. Thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      So happy to hear that! Related concepts, and examples of how to calculate in Excel in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQB

  • @kunalmaru7404
    @kunalmaru7404 2 роки тому +1

    i did a course from University of pennsylvania which had way worse explanation than this
    This is Precise and clear !!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you, Kunal! Please share the link to the video/channel with fellow students, and have a look at my videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @hajydurdy
    @hajydurdy Рік тому +1

    Thanks for video, very helpful for my exam!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Nice to hear that. Best of luck! Please spread the word to fellow students, and have a look at my videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @Cosmic86x
    @Cosmic86x 5 років тому +2

    Really good explanation! Thanks for your videos!

  • @bleedforhockey96
    @bleedforhockey96 11 місяців тому +1

    Great video. Thank you for the simple explanation

  • @fatimagalang8661
    @fatimagalang8661 4 роки тому +1

    Thank you soooo much!! Saying hi from the Philippines!! 😇😇

  • @margasessentials986
    @margasessentials986 2 роки тому +1

    Indeed an easy explanation! Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Happy to hear that! You're welcome. Check out the related videos on IRR and WACC as well.

    • @margasessentials986
      @margasessentials986 2 роки тому +1

      @@TheFinanceStoryteller Will do.😊

  • @marloncastro2482
    @marloncastro2482 3 роки тому +1

    So easy to understand bro! Thanks tons. It was perfect, you just give the elemental theory and move on to the hands-on part, where we really struggle haha

  • @EvanThomas
    @EvanThomas 2 роки тому +1

    You explained this perfectly! Thank you!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad it was helpful, Evan! I have videos on related topics like IRR and WACC as well for you: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @marianeladiaz9
    @marianeladiaz9 3 роки тому +1

    Thank you!!!! you explained this topic so easy. I appreciate your video very much. :)

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Glad it was helpful, Marianela! Please subscribe, and spread the word!

  • @gianlucamondini
    @gianlucamondini 11 місяців тому +1

    Thanks, very useful and clear explanation! :)

  • @mrmajicka
    @mrmajicka 4 роки тому +2

    Good video. I suck at maths and even I understood this easily.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Excellent! Happy to hear that, Ian! Thank you for watching and commenting.

  • @TechnoDB
    @TechnoDB 4 роки тому +4

    Wow.. Awesome.
    Really helpful
    Thanks man

  • @leighscollection
    @leighscollection 2 роки тому +1

    Very logically explained.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you, Leigh! Check out my related videos on IRR and WACC as well!

  • @KhutsoMagampa
    @KhutsoMagampa Рік тому +1

    It was an excellent explanation 🙏

  • @MrShawntompkins
    @MrShawntompkins 3 роки тому +3

    Thanks for this. Studying for my PMP and this helped a lot. Now I just need to figure out what WACC and how that is used.

  • @vanderpant2116
    @vanderpant2116 4 роки тому +7

    Great vid thank you😁

  • @youtubejoe
    @youtubejoe 3 роки тому +1

    At 5:06 in the video you show a weird E type symbol. What exactly does that mean? Can you translate that symbol and letters into the numbers used in your example? Please help. Thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Hello Joe! That's the mathematical symbol for "sum", indicated by a letter of the Greek alphabet, called the "uppercase sigma". It means you need to sum the present values of the future cash flows for all the years that are in scope for the project. Earlier in the video, I was showing an example of a project where you invest today in return for benefits during the next 4 years. The mathematical formula makes it more generic, so you can apply the NPV concept to projects of 3 years, or 10 years, or 20 years, etc.

  • @Saint_Monaco
    @Saint_Monaco 3 роки тому +1

    Such an amazing straight forward video godbless you sir

  • @subham251
    @subham251 4 роки тому +2

    GREAT GREAT GREAT EXPLINATION SIR THANKU SOO MUCH.....

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 роки тому

      Wonderful to hear that. Thank you for watching and commenting. Here's the link to the "sequel": ua-cam.com/video/1ZTIwmn1Cm0/v-deo.html

  • @LudwigVanSkorm
    @LudwigVanSkorm 2 роки тому +1

    Wtf? This was so easy and very well explained.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you, Ludwig! More videos on related topics (IRR, WACC, etc.) in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @jamiekneebone8778
    @jamiekneebone8778 2 роки тому +2

    At 3:20, was the 20% a given or did I need to conclude the 20% out of the available information? Great video! And thanks in advance if you respond!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Hello Jamie! The former: take the 20% as a given. To make the effect of the time value of money look very dramatic, I decided 20% would be a nice number to use. In the real world, for mature and established companies, a WACC of around 10% is more likely.

    • @jamiekneebone8778
      @jamiekneebone8778 2 роки тому +1

      @@TheFinanceStoryteller Thank you for your time!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Happy to help!

  • @avronilbanerjee5302
    @avronilbanerjee5302 2 роки тому +1

    this channel is insane

  • @unicycle227
    @unicycle227 3 роки тому +2

    Dude, you're a god. thank you

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      You're welcome!!! I have some more videos for you on related topics like IRR, WACC etc.: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @mustafanaji1683
    @mustafanaji1683 3 роки тому +1

    I'm a bit late but this is extremely useful! Keep up the good work

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому

      Thank you very much, Mustafa. I have a bunch of related videos on my channel about things like WACC and IRR as well. Please spread the word!

  • @sankarm3204
    @sankarm3204 2 роки тому +1

    Best explanation thank you so much👍🏻👍🏻

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Glad it was helpful! Related concepts in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @cot1069
    @cot1069 Рік тому +1

    nice video my g, helped me out a lot thanks.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Glad I could help! I have videos on related topics like IRR and WACC as well for you: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @Thomas-nl6ev
    @Thomas-nl6ev 4 роки тому +1

    Best explanation of this on the whole Web, thanks Mr Storyteller :)

  • @zohaibjamal
    @zohaibjamal Рік тому +1

    What a wonderful explanation. Where were you in my college time

  • @aaron576
    @aaron576 3 роки тому +2

    Crystal clear!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 роки тому +1

      Thank you, Aaron! More videos on NPV-IRR-WACC and related concepts in this playlist: ua-cam.com/video/1O-DbtVueMw/v-deo.html

  • @lakijahat
    @lakijahat 2 роки тому +1

    ij nootist det yoe hev ee verrie Dutch eksent, so ij asyoem det yoe ar Dutch hahaha 🤪
    Thank you very much for the clear explanation. You really helped me 🙏🏾

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому +1

      Yoe nootist iet korrektly! 😎
      Happy to hear it was helpful anyway! Did you check out the related videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @marcgerges1380
    @marcgerges1380 Рік тому +1

    Brilliant easy to understand.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Рік тому

      Thank you, Marc! That is very nice to hear. Check out the related videos on IRR, WACC, etc as well in this playlist: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @ivysimmons216
    @ivysimmons216 2 роки тому +1

    Thanks so much for the clarity!!!

  • @atharvsalunke5390
    @atharvsalunke5390 2 роки тому +1

    Superb Explanation👌👌

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  2 роки тому

      Thank you 🙂 I have videos on related concepts like IRR and WACC as well for you: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html

  • @nazrulamree1231
    @nazrulamree1231 8 місяців тому +1

    Thank you thank you. Easy to understand

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  8 місяців тому

      Glad to hear that! Check out the related videos on IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB

  • @alfageek5892
    @alfageek5892 5 років тому +3

    Great explanation, thanks

  • @pitt1939
    @pitt1939 2 роки тому +1

    Great, great video! Thank you so much!

  • @BlendFootball
    @BlendFootball 2 роки тому +1

    So simple...thanks man😉

  • @aneeshspillai7569
    @aneeshspillai7569 2 роки тому +1

    This is an excellent vid.

  • @alaashublaq6810
    @alaashublaq6810 2 роки тому +2

    Very beneficial thank you 😍

  • @ivorisus2150
    @ivorisus2150 2 роки тому +1

    Helped a lot man thank you

  • @khxnbeats
    @khxnbeats 5 місяців тому +1

    damn thanks man, made things so simple

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  5 місяців тому +1

      Happy to help! Have a look at the videos on related topics like IRR and WACC as well: ua-cam.com/video/aS8XHZ6NM3U/v-deo.html&pp=gAQBiAQB