Investment Evaluation
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by comparing the present value of cash inflows and outflow...
Mon, 7 Oct, 2024 at 3:23 PM
The purpose of financially evaluating an idea before project approval is to ensure that the project is viable and worthwhile from an economic perspective. T...
Mon, 7 Oct, 2024 at 3:23 PM
Perpetuity calculations are used in finance to value an infinite series of cash flows. A perpetuity is a type of annuity that provides continuous cash flows...
Mon, 7 Oct, 2024 at 3:23 PM
Several factors influence the financial metrics used to evaluate an idea: Discount Rate: The rate used to discount future cash flows is crucial. It often ...
Mon, 7 Oct, 2024 at 3:24 PM
The payback period measures the time required for an investment to recover its initial cost from the cash inflows generated by the project. It provides a si...
Mon, 7 Oct, 2024 at 3:24 PM
An infinite series of cash flows can have a finite present value due to the concept of the time value of money. This principle states that a dollar received...
Mon, 7 Oct, 2024 at 3:24 PM