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Net Present Value (NPV) 

Edspira
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This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example.
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Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
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28 авг 2024

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Комментарии : 603   
@TraumaER
@TraumaER 3 года назад
*Just here studying for a Master's Degree course because my actual teacher spent 3 hours confusing the class. I now understand in under 10 minutes.* _Technology #1!_
@Edspira
@Edspira 3 года назад
I'm glad you understood the video, but I'm sorry that your prof sucked!
@TraumaER
@TraumaER 3 года назад
@@Edspira haha thanks! Funny reply!
@MrSiloterio
@MrSiloterio 2 года назад
Same! Also preparing for our final comprehensive exam in Graduate School and Edspira is a life-saver! Not just in finance but also in my econ class!
@SarcasmSage
@SarcasmSage Год назад
same here.. our Professor posted this video to be learned rather than teaching himself..
@DinnoPizza
@DinnoPizza 5 месяцев назад
im living this right now
@ashleysanfino8221
@ashleysanfino8221 7 лет назад
How come eight people have tried to explain this concept to me and you're the first to do so in a simple way that makes sense? Thank you for this, you're saving my ass in managerial accounting right now.
@lilmoesk899
@lilmoesk899 6 лет назад
You're definitely a skilled teacher. Your MBA students should feel lucky to have you (my accounting professor is, unfortunately, horrible at explaining anything). I'm jealous of them. Visited your website and just wanted to say thank you for doing what you do. The world needs more people like you.
@richardgordon
@richardgordon 7 лет назад
Brilliantly explained. You make me feel a lot smarter than I actually am.
@leroydywili6798
@leroydywili6798 2 года назад
🤣🤣 word
@ranycans7400
@ranycans7400 Год назад
fr fr
@esraafawzi2383
@esraafawzi2383 4 месяца назад
Same😂
@joannas22
@joannas22 8 лет назад
I guess we are all here trying to find out how to pass successfully our Corporate Finance exam :D
@joannas22
@joannas22 8 лет назад
Oooh, and good luck to everyone who is struggling with it!
@4dwyn
@4dwyn 7 лет назад
You betcha :)
@karish8622
@karish8622 6 лет назад
YEs! :'(
@Zeioth
@Zeioth 6 лет назад
Some people have an actual business, you know.
@Kashif.naseer
@Kashif.naseer 6 лет назад
Dzhoanna Starkova indeed
@mohammadshoaib9521
@mohammadshoaib9521 5 лет назад
legit better than my University class, learned this concept in 7 mins... and didnt learned it there even after 3 whole hours
@rawadrizk999
@rawadrizk999 5 лет назад
What uni do you attend?
@PHOEBEE69
@PHOEBEE69 4 года назад
me freaking too. omg, was literally bout to drop out lmao
@Cheesecake99YearsAgo
@Cheesecake99YearsAgo 3 дня назад
We should avoid your university 😂
@mohammedanbool9688
@mohammedanbool9688 9 месяцев назад
I am an IB student from Yemen. I wanna say that you really deserve a huge thanks for your efforts. Thanks a lot. ❤
@VGNAclan
@VGNAclan 7 лет назад
You managed to take something I couldn't understand after going to multiple classes, and made it very easy to understand in just 9 min and 25 sec. Thank You so much!
@Edspira
@Edspira 7 лет назад
No problem. You deserve all the respect for not giving up!!
@copperntod17
@copperntod17 8 лет назад
THANK YOU SO VERY MUCH FOR ALL THE WONDERFUL VIDEOS YOU HAVE SO KINDLY PROVIDED. I AM TAKING MY FIRST MBA PROGRAM CLASS (ACCTG AND FINANCE FOR MANAGERS) AND ALL YOUR VIDEOS HAVE HELPED ME IMMENSELY. I LISTEN TO THEM AT WORK ALL DAY AND BY THE TIME I READ THE ASSIGNED MATERIAL, I AM VERY FAMILIAR WITH IT, AND I OWE MANY THANKS TO YOU... THANK YOU, THANK YOU!!! :D
@Edspira
@Edspira 8 лет назад
Thanks so much for the kind words. Best of luck in your MBA class!
@dianeharpal4811
@dianeharpal4811 4 года назад
I wish RU-vid"s algorithms lead me here when I started college, you have been so much help.
@chriscrenshaw3230
@chriscrenshaw3230 2 года назад
Love this guy, been helping me with my MBA for the past year or so now.
@darellteague3845
@darellteague3845 7 лет назад
Dude, after hours of trying to read tables, these formulas are more my forte. Why thank you, Edspira.
@RicoSuave678
@RicoSuave678 8 лет назад
The best explanation of NPV. Thank you - concise, well explained and presented in a sequential manner that simply put all the pieces together to understand the concept of NPV.
@Edspira
@Edspira 8 лет назад
+Joseph Perez Thank you for the kind words. I'm happy to hear you've mastered the concept!
@reginakuai7307
@reginakuai7307 3 года назад
@@Edspira yj cgdmz
@randaalisawi4655
@randaalisawi4655 8 лет назад
Thank you soooo much for this very simple explanation, I have an exam tomorrow and I was finding it very confusing. Much appreciated!
@Edspira
@Edspira 8 лет назад
+Randa Alisawi No problem! I hope you did great on your exam!!
@praxisvictim5348
@praxisvictim5348 4 года назад
very nice. how much
@abee207
@abee207 7 лет назад
Only genius can explan it in SIMPLE way . Thank you !
@gianneyeung5147
@gianneyeung5147 3 года назад
This is so much easier to understand the 3 hour lecture at the business school I'm attending.
@Edspira
@Edspira 3 года назад
That sounds painful, ouch!
@chosen167
@chosen167 2 года назад
If only my MBA teacher explained this I wouldn't have to resort to spending $0 learning this on RU-vid. You have added value to my life thanks.
@Edspira
@Edspira 2 года назад
Happy to help!
@ayanas9892
@ayanas9892 Месяц назад
Thank you so much! This is the first video with an explanation I've understood, I'm grateful
@AstriDBZ
@AstriDBZ 8 лет назад
Thank you so much for offering these calculations for free on RU-vid, they are highly appreciated! :)
@barbaramatoscarvalho8467
@barbaramatoscarvalho8467 4 года назад
I've already tried to understand it with multiple books and other videos and I never understood it. Now within minutes I was so clear! Thank you so much for this amazing video!
@ramazonpine4151
@ramazonpine4151 6 месяцев назад
Thank you very much. I got the concept of NPV just under 10 minutes, which is absolutely decent. Its good to know that this type of content is free of charge:)
@MysticalDreamerr
@MysticalDreamerr 3 месяца назад
OMG, thank you soooo much!!! Your explanation is way clearer than any other videos I've watched. You're my lifesaver!😭🙏
@stefaniac2095
@stefaniac2095 8 лет назад
it was so easy, and all the books make it so complicated. thank you for making it sound like a piece of cake.
@Edspira
@Edspira 8 лет назад
Why do so many textbook authors do that... I'll never understand! I'm glad you were able to learn the concept and I hope you do great in your courses! Best wishes
@lenalarina59
@lenalarina59 5 лет назад
I remember a year ago, I was watching your channels videos and one of examples that was quite funny was coming to my mind from time to time and would make me smile, and today I came across your channel again and that example about clown came to my mind, it made me wonder who is the person behind the videos with this great sense of humour and extremely exquisite explaining abilities. I just googled it , came across your website and your childhood story. It is really inspiring story for many teens and even complete adults like myself. Thank you for this channel and videos, best wishes 😘
@TheLadymaryam
@TheLadymaryam 3 года назад
thank you so much, I do not know why our professor is not able to explain like this.
@Edspira
@Edspira 3 года назад
Happy to help!
@CristianGarcia-kc9zd
@CristianGarcia-kc9zd 9 лет назад
Great videos... Simple and to the point.... Great work I learned more from your videos than my professor trying to explain it in 4hrs
@InfectedoOG
@InfectedoOG 3 года назад
Damn, this is actually surprisingly easy. These damn finance formulas make everything look so complicated
@Edspira
@Edspira 3 года назад
Agreed!
@ProcrastinationMaster
@ProcrastinationMaster 6 лет назад
I pay £9000 to watch RU-vid videos. But videos like this helps ALOT so thank you!
@ctonew6155
@ctonew6155 6 лет назад
This was better than watching ITunes U's MIT Finance course. I like the way you explained why NPV >0 and its importance.
@Edspira
@Edspira 6 лет назад
Awesome. I'm glad this video helped you! I have 6 more videos on financial decision making related to corporate finance. You can check them out here: edspira.com/lessons/financial-decision-making Thanks for watching!
@ConnorWilkins
@ConnorWilkins 3 года назад
This guy has helped me more than my professor for my MBA.
@Edspira
@Edspira 3 года назад
Happy to help my friend!
@matthewohare8620
@matthewohare8620 6 лет назад
You are a legend my friend. Hours lost on lectures and this explained in 9 mins
@Edspira
@Edspira 6 лет назад
Awesome, thanks for watching!
@ariah5093
@ariah5093 Год назад
That last part you said about making more than what we could have made if we invested It at 6% made so much sense! Thank you! God bless you, brother!
@Edspira
@Edspira Год назад
I'm so happy to hear that it clicked! Thank you for the kind words, and good luck with your course!
@MrCEO-jw1vm
@MrCEO-jw1vm 3 месяца назад
couldn't help but subscribe after stumbling on this. I'm a college student trying to lear about finance, and you do a great job explaining and motivating this topic with the examples effectively conveying the message. I like the interpretation too!
@nomnom6136
@nomnom6136 7 лет назад
u make complicated stuff soo simple,n only few can do dat.....tnx a lot
@robinj.792
@robinj.792 6 лет назад
Sir, thank you for for taking time to record and share your videos. I actually understand! Again, sincere gratitude.
@Edspira
@Edspira 6 лет назад
No problem. Thanks for watching!
@hopemsoffe702
@hopemsoffe702 Год назад
I am prepping for my ACCA-SBL exam on March 7, 2023. We usually have a FINANCIAL PROJECTIONS section which requires us to analyze a proposed investment. I am grateful for this video. Brief and easy to understand. Thank you, Sir.
@InSterquiliniisInvenitur
@InSterquiliniisInvenitur 9 лет назад
This was very informative and easy to understand! I like how brief the lesson is too. I wish more people could explain with this clarity. Keep it up!
@aldisilvia
@aldisilvia 8 лет назад
+Alex Creznic 6% is the discount rate he said at the end of the video
@arunnathsr7680
@arunnathsr7680 4 года назад
Explained well & Much better than my professors
@Edspira
@Edspira 3 года назад
Thank you!
@theEmmasound
@theEmmasound Год назад
Thank you so much. Thank you for actually explaining the conceptual framework for why this is important, when we do it and why we do it. It not only makes me understand the calculations better, but makes it all the more interesting. You are 10000x better than my current MBA teacher :).
@Edspira
@Edspira Год назад
Thank you so much for the encouragement!
@88spaces
@88spaces 4 года назад
You made the concept of NPV crystal clear. Thank you.
@BanCoP3Q3VN
@BanCoP3Q3VN 4 года назад
Thank you for a short video that well explains what is NPV and why we need to use them.
@Edspira
@Edspira 3 года назад
No problem!
@anhnguyentram9888
@anhnguyentram9888 2 года назад
thank you so muchhhhhhhh!! I have tried to understand NPV but cannot until finding your video!! your video is better at explaining NPV than the Cambridge textbook 😭
@Edspira
@Edspira 2 года назад
I'm so glad you found the video helpful!
@atheekfareed4691
@atheekfareed4691 2 года назад
Excellent explanation, using non-standard words like discounting, discount rate, opportunity to invest somewhere else and so on. This makes is easier to relate to the concept. Good job!
@edleneferreira158
@edleneferreira158 4 года назад
Very good explanation. I am not from a financial background and I need to learn this concept and calculation for my Project Management course. Thank you for explaining down to the details, so even people like me (with little mathematical skills) could understand.
@Edspira
@Edspira 3 года назад
No problem my friend 😀
@weikeduo2236
@weikeduo2236 Год назад
Thanks for your work! I`m from Ukraine and my professor were killed in the war. Our class now studying by ourselves and yours videos helps a lot!
@sable2you7225
@sable2you7225 8 месяцев назад
Thank you so much for doing what you do. I have been struggling thinking I'm too old for this...lol. My instructor will not teach. She just says watch the video.
@floralscraft
@floralscraft 3 месяца назад
After 10 year, ifund this valuable 😮the real reason i like RU-vid 😊
@arwaromaizan2281
@arwaromaizan2281 5 лет назад
I have a finance exam in two days and I know nothing about finance but its actually fun thank you for explaining this with exams
@aon2152
@aon2152 5 лет назад
Hope it went well and you passed!!
@robertosandoval6335
@robertosandoval6335 3 месяца назад
Wish all teachers were this good.
@haileysailor
@haileysailor 6 лет назад
i wish youtube was a part of my resource of additional education while i was in school. but luckily I am studying for a project certification, and this came in handy too!
@brandonbandstra226
@brandonbandstra226 3 года назад
You are such a clear teacher! Thank you SO MUCH!
@Edspira
@Edspira 3 года назад
Glad you think so!
@NITROUSOXIDE921
@NITROUSOXIDE921 6 лет назад
Exam is tomorrow and this video helped me so much. really thank you!!
@Edspira
@Edspira 6 лет назад
Thanks. I wish you the best on your exam!
@norma-jeabarsh5266
@norma-jeabarsh5266 8 лет назад
Thanks. You make things so easy to understand. I have been out of school a long time, and forgot these concepts.
@Edspira
@Edspira 8 лет назад
+Norma-Jea Barsh No problem! It's funny how quickly we forget concepts if we don't use them in our daily lives... I studied a lot my initial years of college, but now the material seems like ancient history :)
@jjholmes8530
@jjholmes8530 2 года назад
My search ends here, thank you❤️💯. I just wanted to know what does NPV > 0 means and everybody was busy explaining the formula which I can google.
@JoeH..
@JoeH.. Год назад
Youre a legend. Ill have to share this with my accounting class. Ive not even started learning this in class yet i worked this out on an example and answer sheet aligns with the method.
@saisanthoshsomasundaram5604
@saisanthoshsomasundaram5604 6 лет назад
You have explained it in a simple manner. Thanks.
@Edspira
@Edspira 6 лет назад
Awesome. Thanks for watching!
@X_EGY
@X_EGY 7 месяцев назад
BRILLIANT, THANK YOU SO MUCH, BEST EXPLANATION EVER.
@likquidsteel
@likquidsteel 7 лет назад
Great video. Great effective use of explaining concepts and employing familiar proper terms and equations, the education of which remained dormant from my undergraduate finance days until now. Thank you.
@KOnneh1234
@KOnneh1234 11 месяцев назад
You are such a great teacher, just had to stop the video to tell you.
@ryancresswell4398
@ryancresswell4398 6 лет назад
Excellent explanation of NPV. Thank you!
@elijahmoss9114
@elijahmoss9114 7 лет назад
Great explanation, I understood now better than my lecturer's...I'm studying Financial Management
@emilie3907
@emilie3907 Год назад
Thank you for your existence
@Edspira
@Edspira Год назад
😀
@rent1762
@rent1762 8 лет назад
Thanks, this is one of the better videos explaining NPV.
@Edspira
@Edspira 8 лет назад
Thank you for the comment. Take Care!
@stansidorov
@stansidorov 7 лет назад
Brilliant explanation. I think your video should be in investopedia. Thanks a lot.
@akramayoub2536
@akramayoub2536 6 лет назад
excellent and very simple explanation! Thx
@AM-sr8bu
@AM-sr8bu 8 лет назад
thanks, i have a corporate finance exam today, and this really helps a lot
@Edspira
@Edspira 8 лет назад
No problem- I hope you did great on your exam!
@olivejess8957
@olivejess8957 4 года назад
Thanks for laying down such a perfect explanation on this topic, I find it very helpful because lately i have been trying to understand the value of cash ranging with time difference especially now i get to invest in the stock market.
@charleskinseth9645
@charleskinseth9645 4 года назад
Wow, You invest in the stock market? You must have known so much about the stock market because knowing little is dangerous when it comes to trading stocks
@ailemteo2362
@ailemteo2362 4 года назад
The stock market profit those with vast knowledge on how it works
@stacybob9453
@stacybob9453 4 года назад
After reading a few books and also watching some youtube videos i thought i was very ready to invest all by myself. I ended up losing my capitals
@olivejess8957
@olivejess8957 4 года назад
@@stacybob9453 hahaha you got so unlucky i've been in those shoes and i know how losing money to the market hurts
@olivejess8957
@olivejess8957 4 года назад
Real Life. It’s been profitable especially since a pro trader helps run my account.
@rhinojosa055
@rhinojosa055 7 лет назад
your lessons are excellent sir. main reason i got through my beginning MBA classes
@fotogrfik
@fotogrfik 2 года назад
30 pages of a text book and 2 hours of a lecture and it clicks for me now after this 9.5 minute video.
@Edspira
@Edspira 2 года назад
😀
@regisndongo5723
@regisndongo5723 8 лет назад
Very clear and well explained. Thank you very much. I enjoyed the video.
@Edspira
@Edspira 8 лет назад
+Regis Ndongo Thank you!
@99lomari
@99lomari 4 года назад
Excellent Sir, how simple and easy way you adopted to transfer this valuable knowledge, really appreciate a lot,
@Edspira
@Edspira 3 года назад
No problem!
@devllb83
@devllb83 5 лет назад
tons of thanks for such a simplified explanation....
@rudynavor5613
@rudynavor5613 3 года назад
Thank you for the explanation of what the NPV means. I got the formula but didn't grasp the meaning of the outcome. Excellent explanation.
@Edspira
@Edspira 3 года назад
Thank you!
@kaleemullah247
@kaleemullah247 6 лет назад
speed : 1.5 and you are the perfect teacher
@mesmrizing3656
@mesmrizing3656 2 года назад
Thank you so much for the simple explanation, currently writing an assignment about economic feasibility study.
@Edspira
@Edspira 2 года назад
Good luck with your assignment!
@Hershekiss38
@Hershekiss38 6 лет назад
Your videos are easy to follow. I appreciate you a great deal!
@Edspira
@Edspira 6 лет назад
Thank you my friend!
@bloodymary9557
@bloodymary9557 4 года назад
Thank you so much. This area always bugged me. But you explained it very well
@austinmatt3688
@austinmatt3688 9 лет назад
Excellent video, great simplification of terminology and spot on example!
@salmahazem5850
@salmahazem5850 3 года назад
Thank you so much you explained it so easily, I can't believe that this is the same topic that my professor explained!!!!
@Edspira
@Edspira 3 года назад
No problem, I'm glad you understand the topic now!
@appalashettymounika1599
@appalashettymounika1599 8 лет назад
Thank you, and simplified the complex problem to simple explanation !
@Edspira
@Edspira 8 лет назад
Thank you! I love your name!!
@illiterut
@illiterut 4 года назад
really great explanation - thanks for not rushing and for explaining thoroughly
@Edspira
@Edspira 3 года назад
Sure thing!
@dave9343
@dave9343 2 года назад
Excellent, as usual. You have the knowledge and you know just how to impart it for anyone to understand.
@r42221
@r42221 7 лет назад
Thank you, thank you! This was such a great explanation and it sunk in the first time. Until now, I was fuzzy on the concept of NPV because I had read so many bad explanations in the past. Great teacher!
@ahmedhussam9259
@ahmedhussam9259 8 лет назад
Thank you very much I've exam after 2 hours and you help me very much !!
@sharminmanocha3938
@sharminmanocha3938 3 года назад
Thank you for your video, it provided me with better clarity of the NPV concept, cheers!
@Edspira
@Edspira 3 года назад
You're very welcome!
@jobymichael8981
@jobymichael8981 6 лет назад
THANK YOUR SIR FOR YOUR GREAT VIDEO . IT IS SO SIMPLE AND POWERFUL
@Edspira
@Edspira 6 лет назад
Joby, Comments like these bring a smile to my face. Thanks so much for your support!
@Weightingtablesafter
@Weightingtablesafter 7 лет назад
God bless your beautiful soul.
@belac_4176
@belac_4176 7 месяцев назад
I think the last explanation about the rate of discount is has been missing in all the videos I watched, good job and thank you.
@bnnm23
@bnnm23 2 года назад
Very well explained. Thank you
@bandiilem201
@bandiilem201 4 года назад
6 years ago, but still useful. Thank you✔️✔️
@georgebrooking3820
@georgebrooking3820 2 года назад
Wait, this is a great explanation!
@Edspira
@Edspira 2 года назад
Thank you!
@brettalexander7097
@brettalexander7097 2 года назад
Thank you for making this video. Finally starting to make sense to me now 💡
@Edspira
@Edspira 2 года назад
Glad it was helpful!
@anasschentouf6905
@anasschentouf6905 6 лет назад
You saved my useless day. THANK YOU.
@Edspira
@Edspira 6 лет назад
Awesome! Glad this was helpful.
@deliari1
@deliari1 6 лет назад
best explanation ever for my Supply Chain Class !! :)
@Edspira
@Edspira 6 лет назад
Awesome. Glad to help!
@tomw1508
@tomw1508 5 лет назад
In 2019 and this video is still insanely helpful.
@shantaliesandra9743
@shantaliesandra9743 4 года назад
I can now pass my exam tomorrow thnx alot
@zippy2u
@zippy2u 7 лет назад
Thanks for an excellent and thoroughly understandable explanation of the process.
@sanfran224
@sanfran224 8 лет назад
Thanks man. Save me a lot of time
@nitelik9887
@nitelik9887 4 года назад
thank you so much. i finally understood the concept thanks to you
@Edspira
@Edspira 3 года назад
Glad it helped!
@byronsmithar
@byronsmithar 4 года назад
thank you for this video in class it was so complicated. Now i understand the concept
@Edspira
@Edspira 3 года назад
Excellent!
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