Thank you so much for the video. I was struggling to understand all these terms, you made it a breeze. Very clear and concise. Thank you again for sharing your knowledge very skillfully.
Thank you Vaidya, a really clear and well-illustrated breakdown of NPV - currently studying MSc and there are so many poorly explained examples available. I will definitely refer to your videos in the future.
Thank you for this video. I'm in the process of taking my Priniciples of Finance course in college, it's great to see these formulas in real time. I look forward to reviewing your videos on this subject going forward.
Hi I though this was well explained and great application. Request - Can you do a video that explaine Pay Back, NPV and IRR and at the end a comparision of the differences of all three investment tools PLEASE!
Thank you Dheeraj. Amazing explanation of NPV. If you have a new project that has a setup period, for instance, the project takes 2 years to set up before cash inflows can start. Do you indicate the cash inflows as zero for the first 2 years?
In your example you use increasing cash flow, seeming to echo the years: 110 for year 1, 120 for year 2...This causes the PV values to also be regularly increasing all while using the $100 amount for clarity - but it's just a coincidence, no?
And NPV is, given our accepted rate of return will the project cash flow result positive flow or negative flow. If it is positive we accept it otherwise reject it
Thank you so much for the video. I was struggling to understand all these terms, you made it a breeze. Very clear and concise. Thank you again for sharing your knowledge very skillfully.
Glad it was helpful!
Thank you Vaidya, a really clear and well-illustrated breakdown of NPV - currently studying MSc and there are so many poorly explained examples available. I will definitely refer to your videos in the future.
Your comment made our day, thank you!
It was a wonderful video. It became very easy for non-finance people like me to understand the basic concepts through this video!!
Thank you so much for this video. You make it so easy to understand and walking step-by-step through the Excel formulas is huge!
Glad we're on the same page, cheers!
🎉🎉 Very simple and crystal clear.Thanks Vaidya
Glad you liked it
Very powerful tutorial. Thank you and be blessed
Thanks for sharing your perspective!
Great tutorial so far that I came a cross. I'm currently pursuing my MBA and your videos on Finance and Accounts are exceptional. Thank you.
Your comment made our day, thank you!
Excellent teaching!
Very useful, explained like a Pro.
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Thank you. Very well explained, including the fact that all the inputs are assumption based!
You're very welcome!
Thank you for this video. I'm in the process of taking my Priniciples of Finance course in college, it's great to see these formulas in real time. I look forward to reviewing your videos on this subject going forward.
Appreciate your feedback, more content coming soon!
Hi Dheeraj,
Have read your articles and postings on the Web. Glad to see you on TH-cam......!!
Good explanation of npv sir
Hi I though this was well explained and great application. Request - Can you do a video that explaine Pay Back, NPV and IRR and at the end a comparision of the differences of all three investment tools PLEASE!
fantastically described
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Good explanation of NPV. It's simple and easy to understand. Can you explain how to create graph using excel. I'm a beginner here.
Nice 👍
What about if the cashflows are considered a perpetuity and grow at a certain rate? Help!!
Thanks a lot for this useful video
Thanks for watching, glad you liked it!
Thank you so so much!
Thank you very much very intersting and very good explanation; the only thing I couldn't catcht how do you design the GRAPH
What are the determinants of discount rate? Is it cost of capital + expected rate of interest rate?
Thanks a lot😊
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you are incredible
Thank you Dheeraj. Amazing explanation of NPV. If you have a new project that has a setup period, for instance, the project takes 2 years to set up before cash inflows can start. Do you indicate the cash inflows as zero for the first 2 years?
Yes, that's correct Rafiu!
beautiful.... on point crystal clear
Thanks for sharing your perspective!
So present value is how much we need to invest now given our accepted rate of return
In your example you use increasing cash flow, seeming to echo the years: 110 for year 1, 120 for year 2...This causes the PV values to also be regularly increasing all while using the $100 amount for clarity - but it's just a coincidence, no?
And NPV is, given our accepted rate of return will the project cash flow result positive flow or negative flow. If it is positive we accept it otherwise reject it
best
Thanks for watching, glad you liked it!
If NPV is zero we earn exactly the accepted rate of return