Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a project ...

Daniel Myers oversees client portfolios, investment policy at Kreger Financial and is the owner of Deep Fork LLC, a real estate investment firm. Charlene Rhinehart is a CPA , CFE, chair of an Illinois ...

Now I (sort of) understand why so many homeowners are in loan modification hell. This Dante's Housing Crisis Inferno has been fanned by the introduction of a simple calculation: the NPV. What's the ...

The basic premise of finance is that money has time value -- a dollar in hand today is worth more than a dollar in the future. The study of finance seeks to make it possible to compare the value of a ...

When a company is making capital budgeting decisions -- whether it's something as small as buying a new copier vs. servicing an old one or as big as entering a new market -- it must weigh the expected ...

Barclay Palmer is a creative executive with 10+ years of creating or managing premium programming and brands/businesses across various platforms. Thomas J. Brock is a CFA and CPA with more than 20 ...