A level Business Revision - Net Present Value Method of Investment Appraisal

In this A level Business revision video, we complete our look at investment appraisal by learning about the Net Present Value method of investment appraisal. Some exam boards may refer to this method as the 'discounted cash flow' method.
Investment appraisal is a crucial topic on the new AQA A level Business exam, the new edexcel Business specification and the new OCR Business A level.
You can see our video on the payback method of investment here • A level Business Revis...
You can see our ARR video here • A level Business Revis...
A level Business Studies Revision from Taking The Biz.
See more of our videos: / takingthebiz

[@RedPandaGames.]

You know that song "When I kissed the teacher" by Abba? Yeah. You are a wonderful man. Thank you. So, so much. I'd fail without these videos!

[@olivejess8957]

Net present value is very important when it comes to investing in stuffs like forex and the stock market, and also the future value of your investment capital is guaranteed to be more than the present when you set up a well analyzed investment portfolio.

[@aldrichbyron5748]

I invest in forex as well and i can really tell you it's a profitable market when you know what you are doing

[@nevilleoscar6613]

​ Aldrich Byron And you could as well lose so much money without the right guidance

[@timyoon733]

How can i really have a perfect portfolio? I tried buying the Schwab chart but it doesn't really seem helpful

[@cindymorley2190]

I also bought the schwab chart and it's not really effective

[@olivejess8957]

@@billybriggs1185 Exactly the point

[@djsdrumming]

Bro, you just saved my life...

[@ciam9314]

great stuff. better at explaining then any of my teachers

[@ashutoshthapa4713]

Hey! Quite a lot of useful videos, Thanks ! Cheers on having 0 dislikes, I hope these videos reach out to other people. good luck :D

[@netayconnection6236]

Little updates after 2 years it is currently 7 dislikes!!!

[@hriday5928]

Extremely useful !!! Thanks a ton

[@tentimetex]

Great video, thanks!

[@gartesian]

This was helpful, thank you.

[@prouddadof2dogs828]

So helpful such a legend!

[@Arinzee]

Love this, dude

[@maceyjackson3133]

Me watching this 8 hours before my exam lol

[@thechickenconnoisseur1669]

i got less than 2 hours macey

[@g33orginaa]

how did it go?

[@samsmith3969]

mate i actually love you

[@rossbennett8961]

Thanks, thought that was really useful

[@caseyrecci8428]

superb video !!!!

[@olig1851]

get this man on just a minute

[@woodyjames3680]

this guy is great

[@JosephTaberner]

Thank you so much for making these videos

[@maxcotton5006]

agreed

[@benbirtles1518]

1:45

[@un_know9n839]

plz can u explain discounted payback period, i know it is related to it but still i want clarification or it individually.

[@bizzjiscuit1947]

6:07 "we're gonna recalibrate that sex" 😂😂😭

[@connorhughes7928]

Haha😂

[@ChsonlineOrgUkinternetschool]

Helpful

[@numaniqbal2261]

Thankyou

[@kjjss]

thank you sir

[@officeexpertsislamabad2790]

Sir do you have any notes for alevels business?

[@idiandrew7065]

Hello, I need video lectures for "Tucker's 5-question model". Thank you.

[@lasvegasmalay]

Need create and building for comfortable.Yes...

[@TheXENDINGZ]

Great video. Could you maybe do decision trees?

[@TakingTheBiz]

I have!
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[@netayconnection6236]

Decision tree is so easy

[@netayconnection6236]

@Keanu Reeves Wow I guess it hurts to find out someone can find something so easy, yet you seem to have experienced difficulty. Anyway I'm at Uni and have passed that stage, so no thanks mate I don't want to STFU and I'm entitled to my opinions😁

[@netayconnection6236]

@@ifeoluwapokolapo9693 And what?

[@netayconnection6236]

@@ifeoluwapokolapo9693 Wow I guess theres something called freedom, and I'm entitled to my opinions. If that person had nothing positive to say, then should've said nothing. However, when they do they should expect a reply (Just saying)

[@teeha-]

thank you thank you thank you very very very very much

[@TakingTheBiz]

You're welcome. Hope the videos help.

[@lj9759]

Thank You so much! Have you covered the whole spec now??

[@TakingTheBiz]

Most. Not all.

[@puveet]

you carried my exams bro

[@zenixonipad]

Gl for the paper tmrw g

[@skadhimachekeche3886]

I love you😢

[@tebogzvlogs8679]

got my ib exam tomorrow thanks sir

[@Komodo772]

How did it go?

[@tebogzvlogs8679]

@@Komodo772 it was good thank you

[@khadeejaimthiaz3778]

Hi sir can you make a video on the discounted method of investment appraisal

[@TakingTheBiz]

The discounted cash flow method of investment appraisal is also referred to as the Net Present Value (NPV). They both use a principle known as 'the time value of money' to discount how much money made in the future is worth.

[@abrodolphlincoler6673]

How do you work out target NPV?

[@TakingTheBiz]

The target NPV of the business/managers should be given to you and you calculate the NPV to see whether it would meet that target

[@minalansari6160]

Inflation reduces the value of money that's why it is better to have that money now right?

[@horatiosmith3236]

why are you adding 12 then subtracting 12

[@shikhamishra6974]

Project
Exp
L & R 15 Cr.
P & M 20 Cr.
HEMM Spares 05 Cr- 1St Year
03 Cr- 2nd Year
01 Cr- 3rd Year
Life- 15 Years
Prod- 25 MT Total
1st Year- Nil
2nd 6th Year- 01 MT / Yr.
Balance in balance year.
Sale- Whole production is sold.
60% of production/yr G9 Non- Power
40% of production/yr G11 Non- Power
Exp- Per Year
Wages- 03 Cr.
POL- 0.50 Lakh.
Contractor- 02 Cr.
Electricity- 0.50 Lakh.
Transportation- 05 Cr.
Others- 10 Cr. Find NPV ? Can you plzz solve this...

[@B000en]

🤓

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It’s 4 quid

[@lasvegasmalay]

Mai jangan tak mai...