Why would you want to calculate the net present value of an investment? Simply, to determine whether it’s something that belongs in your portfolio, based on your goals.

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.

The net present value (NPV) method can be a very good way to analyze the profitability of an investment in a company, or a new project within a company.

Net present value helps management or potential investors weigh the wisdom of an investment by enabling the expected benefits to be quantified. It is used in investment control to gauge whether a ...

What's the NPV? NPV stands for net present value, and it is an accounting calculation that every lender makes about each loan that is reviewed for a possible loan modification.

NPV Calculator- Now Easily calculate the Net Present Value of your investments. Get accurate results in simple steps with IIFL Capital's online tool.

Discover why it is important to include changes to net working capital as a component in calculating the net present value (NPV) of a company.

A net present value calculation is a good way to identify the direct cost comparison of leasing versus buying a car, for example. To obtain an accurate net present value calculation, buyers must ...

Therefore, the "present value" to you -- the value in today's dollars -- of that $100 future cost is actually only $95.24.

Calculating a profitability index The next step is to use the information from the net present value calculation to determine a profitability index for the investment.