Net Present Value

Description
This video will help you to understand what NPV is. When projects are taken on, investments are made in order to generate returns from it. These returns will be generated during the life of the project. A decision has to me made on whether to go forward with the project, and NPV helps to make this decision.

NPV is nothing but identifying the future cash flows of a project and deriving its present value and comparing it with the investment. Then you can decide whether to go forward with the project or not.

This short and informative video explains what NPV is, and teaches you how to calculate it.

Video length: 10 minutes 49 seconds