Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Learn how it is calculated and when to use it.

Learn how to calculate the present value of various bond types using Excel, including zero-coupon, annuities, and continuous ...

A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...

Explore the Present Value Interest Factor of Annuity (PVIFA), including its definition, components, and calculation. Discover its role in capital budgeting.

Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.

The internal rate of return, or IRR, is the interest rate that provides a net present value, or NPV, of future cash flows equal to the initial investment amount. Flip that definition around, and the ...

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 ...