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 ...

Businesses must observe proper procedures when undertaking long-term investments to ensure the projected payoff is worth the resource allocation. Capital investments are costly and their benefits are ...

Calculating net present value ( ( NPV )) is functionally-related to today's wide utilization of discounted cash flow (DCF) analysis as a stock selection tool. I will elaborate more on this important ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...

If you run a small business, you realize early that money can be scarce and you must deploy it wisely. You may want to invest in one or more new projects or expansion ideas but have only limited funds ...

Raiffa, Howard. "Methods of Calculating Net Present Value and Internal Rate of Return, Programmed Exercises." Harvard Business School Supplement 171-261, December 1970. (Revised May 1991.) ...