NPV and IRR explained

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Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value explained (including present value and future value): • Net Present Value (NPV...
Internal Rate of Return explained: • Internal Rate of Retur...
NPV IRR Payback period scenarios: • NPV IRR Payback period...
Time value of money • Time value of money ex...
How to calculate #NPV in Excel • NPV in Excel
How to calculate IRR in Excel • IRR in Excel
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: RU-vid videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!

Опубликовано:

6 окт 2018

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Комментарии : 617

@TheFinanceStoryteller 4 года назад

Lots of exciting and helpful new videos coming up! Be sure to click the like button, subscribe and turn on notifications to ensure you don't miss anything. Now that you learned how the NPV and IRR concepts work, your next step is to understand the impact of various scenarios on the NPV and IRR outcomes: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@j.revathireva4909 Год назад

😊

@konstancyja82 5 лет назад

Finally, explained in a way thats easy to understand! I suggest all PMP students to watch it!

@goddessalumni2355 3 года назад

🤦🏽‍♀️🥰🤘🏽

@rauljimenez5485 5 лет назад

I am loving your short and concise videos. They cover the key concepts and make them very clear!!

@TheFinanceStoryteller 5 лет назад

Thank you for the kind words, Raul! Hope there are more videos on the Finance Storyteller channel that are useful to you. Please spread the word to friends and colleagues! :-)

@abidullahkhamosh2099 4 года назад

I did not understand where does this 35, 117 en (46) come from? how has he this calculated?

@endangeredspecies5005 4 года назад

@@abidullahkhamosh2099 35 came from calculating the future discounted cash flows of 333+278+231+193 which is equal to 1035 and subtracting this 1035 from the initial investment of 1000 and you got this 35. i hope this will help you.

@ibsamohamed740 4 года назад

I can't thank you enough. I really can't. You explained to me 2 weeks worth of materials in less than 10. God bless you

@TheFinanceStoryteller 4 года назад

So happy to hear that, Ibsa Mohamed! That is wonderful. Thank you for commenting. I think you should watch the NPV IRR payback scenario video next to understand this even better :-) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@nickyanna3571 4 года назад

This single video has just taught me a full term of university coursework... Somebody remind me why I'm paying £9k a year

@TheFinanceStoryteller 4 года назад

@@nickyanna3571 Thank you! That is both a hilarious as well as saddening statement on the experiences of university education. Get your certificate and get out of there into the real world! ;-)

@AndresSanabriaMusic 3 года назад

A semester in less than 10 minutes

@TheFinanceStoryteller 3 года назад

Wow, thank you, that's a great compliment. Here's the link to the playlist with related concepts like WACC, crossover rate, etc ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@Earth_By_Board 2 года назад

I’m thinking of getting into accounting. Is this exaggerated? 😂

@lilnine3293 2 года назад

@@Earth_By_Board yeah its very exaggerated, its more like a week or 2

@lsansco3012 2 года назад

@@Earth_By_Board yes. It’s covered in one lesson for like 20 minutes.

@alexnumssen2098 2 года назад

Not really

@user-ps8ln5ke2f 3 года назад

Man. you are a great teacher! Many folks make it hard to understand using jargons and stuff. never understood 100% but now I have nailed it. Thanks so much!

@TheFinanceStoryteller 3 года назад

Thanks for the kind words! Very happy to hear that! I have many more related videos on WACC, payback period, etcetera that could be helpful for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html Please subscribe, and spread the word to fellow students!

@vikram_sekar 5 лет назад

Excellent. The perfect video which cleared all my queries on NPV and IRR and provided a base on these concepts. Covered what is it and how to calculate it. Thanks for posting this awesome video.

@TheFinanceStoryteller 5 лет назад

Thank you, thank you, thank you for the very kind words! Happy you enjoyed it. Please tell all your friends and colleagues about it. ;-) Here's the link to two "bonus videos" on how to calculate NPV and IRR in Excel: NPV ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jQ_NDQ2qVVA.html IRR ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-L0JCg5TXudc.html

@cliftonaurelius3060 4 года назад

I can't.thank you more. I was in class and completely clueless what the lecturer was teaching. As a slower learner, you're really a blessing to us. Thank you so so so much ❤️

@TheFinanceStoryteller 4 года назад

You're welcome, Clifton! I have a few more NPV and IRR examples for you in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html and recently finished a video on the related topic WACC ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@abidullahkhamosh2099 4 года назад

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@cliftonaurelius3060 4 года назад

@@TheFinanceStoryteller thank you! I needed the WACC video and you made it. So timely.

@TheFinanceStoryteller 4 года назад

@@cliftonaurelius3060 You're welcome, Clifton! Glad to hear that.

@TheFinanceStoryteller 4 года назад

@@abidullahkhamosh2099 Hello Abidullah! Let me walk you through the formula to arrive at $117 in project B, then you can replicate the same calculation for the other projects A and C. The undiscounted cash flow in project B are Year0 ($1000) Year1 $600 Year2 $500 Year3 $300 Year4 $200. The discounted cash flows for those are are ($1000) + $600/1.2 + $500/1.44 + $300/1.728 + $200/2.0736. If that is still confusing, then watch the related video specifically on NPV: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@johannakenwood3359 2 года назад

Omg thank you so much!! A lecture and multiple videos later, your video finally explained it thoroughly in under 4 mins. 3 years and a pandemic later your videos still teaching!!

@TheFinanceStoryteller 2 года назад

Great to hear, Johanna! Yes, this video has been very successful, and I am happy that so many people found it useful to understand capital budgeting concepts. Here's the playlist with related terminology on WACC etcetera ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@johannakenwood3359 2 года назад

@@TheFinanceStoryteller thank you I will be needing it! Just started supply chain management last week. Thanks so much!!!

@TheFinanceStoryteller 2 года назад

@@johannakenwood3359 You have come to the right place! Here are my thoughts on inventory management: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DZhHSR4_9B4.html

@robertbotta6536 4 года назад

Without a doubt the best explanation of npv and irr on RU-vid. Thank you.

@TheFinanceStoryteller 4 года назад

Thank you very much, Robert! Wonderful to hear that.

@jlee8 2 года назад

I wish I had access to your videos during University. This is one of the best and clear explanations of NVP and IRR. Thank you

@TheFinanceStoryteller 2 года назад

Wow, thank you, Jenny! Please spread the word. Here is the link to my playlist with more capital budgeting content: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@Dorotheen 4 года назад

Thank you so much! I was having a hard time to understand the topic, but you were amazing in clarifying it.

@TheFinanceStoryteller 4 года назад

You're welcome! Please subscribe to the channel, I have related videos on topics like WACC and payback period as well.

@bonganimanini7748 3 года назад

Best NPV and IRR explanation I've ever heard. Thank you

@TheFinanceStoryteller 3 года назад

Happy to hear that, Bongani! I have videos on related capital budgeting techniques for you in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ZuH_q5crAWg.html

@MundaneMuser 4 года назад

My brain hurts.

@mooniebo2752 5 лет назад

easiest explanation I've seen. thank you! you've helped me prepare for my exam!

@TheFinanceStoryteller 5 лет назад

Thank you for commenting! Wishing you all the best with your exam. Maybe the related video on WACC vs IRR can help you as well ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ZuH_q5crAWg.html

@nokuzolaholomisa6223 5 лет назад

Thank you so much, I'm writing tomorrow and I was just lost, everything is clear now. Thank you again x

@TheFinanceStoryteller 5 лет назад

You're welcome! :-) My follow-up video on WACC vs IRR might also be helpful for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ZuH_q5crAWg.html

@Hoshi_Poshi 3 года назад

I'm italian and I was struggling with this for a course in english, thank you this video is very easy to understand!!!

@TheFinanceStoryteller 3 года назад

Ciao! Very happy to hear that. Greetings from the Netherlands!

@starm5556 3 года назад

@@TheFinanceStoryteller Hey. Well explained. How did you get the cash inflows for each? How do you determine the value of each project and which to choose, besides comparing npv. Does a higher or lower irr rate matter ? As well as payback period ? Would you choose an early payback period project that offers a lower amount with a wacc of 12.5% payback of 1,5 years and net present value of 850 000 with irr of 11% or.... a project with a wacc of 12.5% at a period of 2.7 years and Npv of 1500 291 with irr of 19.26% and why ?

@lukasrohler2074 3 года назад

I’m American and I was struggling as well, I’m convinced finance is it’s own language and culture haha thanks for making this video!

@alihussainkurbanhussainbhi7748 Год назад

I really can't thank you enough. I wish I had a teacher like you. God bless you. Amen

@TheFinanceStoryteller Год назад

Happy to help! I can be your virtual teacher on RU-vid! Here is the link to a playlist with related videos like WACC: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@konstancyja82 4 года назад

Just used this video for my pmp exam learning. Valueable information in just few minutes.... Thank you

@TheFinanceStoryteller 4 года назад

Thanks! Great to hear that. I think you will enjoy the follow-up video on NPV IRR payback scenarios as well, for a deeper understanding: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@themotobanditshow 5 лет назад

Thank you this is so simple for me to understand. Currently in my second year completing financial risk. Thanks!

@TheFinanceStoryteller 5 лет назад

Great to hear. Please spread the word! :-)

@omarzeyad1382 3 года назад

thank you so much for this video, I spent 3 Hr trying to understand this on the MBA module material, but now its cristal clear after seeing this video

@TheFinanceStoryteller 3 года назад

You're welcome! Great to hear that, Omar. I have videos for you on related topics like WACC as well ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html Please spread the word to fellow students!

@ericbertoldo1056 4 года назад

I appreciate your work on these videos and making it easier for others to understand. On the things I didn’t understand you answered those who had questions below. Great work!

@TheFinanceStoryteller 4 года назад

Wonderful to hear that, Eric! Thank you for watching and commenting. The questions from viewers indeed helped to clarify some points. I have made a video on NPV and IRR scenarios as a follow-up: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@kaustubhnarkar9820 3 года назад

my dear friend this is one of the best ways you have explained these concepts , they don't explain this as good in universities and professional finance courses really kudos to you mate .

@TheFinanceStoryteller 3 года назад

Thank you so much for the kind words, Kaustubh! I approach each and every video from the real world perspective. Please subscribe to the channel, and take a look at the NPV IRR WACC playlist for more related videos: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@rso143 4 года назад

I can't thank you enough about this video, the concept of NPV which I heard yesterday which the professor was not able to explain and left me confused are now solved for just six minute video. although your calculation of IRR is not clear but will use Excel as I know basics of Excel. thank you so much

@TheFinanceStoryteller 4 года назад

Thank you for the compliments, Rayso! Yes, I agree I could have spent more time on IRR in this video. I made follow-up videos to go deeper into IRR, compiled in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-aS8XHZ6NM3U.html

@zennmaiaguerrero8348 3 года назад

The way how we solve it in business class way back in uni was a shortcut so after months, it was already forgoten. Thank you for explaning the basis of it. Def understand it now. 😊

@TheFinanceStoryteller 3 года назад

Glad it helped! Here are some more examples to really "get" the deeper ideas behind the calculations ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@abusufian8667 Год назад

This video is very crucial to understand the core concept of AFM....thank you!

@TheFinanceStoryteller Год назад

Thank you very much for the kind words! Related concepts like WACC are discussed in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@OsaroOyegun 5 лет назад

Another concise and well explained video. Thank you!

@TheFinanceStoryteller 5 лет назад

Thank you! Happy to hear you enjoyed it.

@user-zm1dm4il4y 3 года назад

I don't know why, but I'm kinda addicted to the accent! lol thanks for the useful information! learned a lot!

@TheFinanceStoryteller 3 года назад

Thanks for watching!

@ashwinudapikar3290 5 лет назад

Very well explained! Thank you so much for the video!

@TheFinanceStoryteller 5 лет назад

Great to hear that, Ashwin! Thank you for watching, and welcome to the channel. :-)

@nileshrathod3153 4 года назад

Really explained well. I got in the first attempt. Before watching this video, I watched other videos, but I couldn't understand. Thank you for your efforts!!

@TheFinanceStoryteller 4 года назад

You're welcome, Nilesh! Very happy to hear that. I think you will like the related video on NPV and IRR scenarios as well: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@abidullahkhamosh2099 4 года назад

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@loveelykiim1001 2 месяца назад

currently reviewing for my cma exam and i kind of struggling with this topic but you explained it in just 6 minutes and i can't thank you enough! you are a lifesaver!

@TheFinanceStoryteller 2 месяца назад

Happy to help! I have a playlist for you with related topics like payback, discounted payback, WACC, etcetera: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB

@loveelykiim1001 2 месяца назад

@@TheFinanceStoryteller thank u so much!

@TheFinanceStoryteller 2 месяца назад

@@loveelykiim1001 Please share with your fellow students!

@TeachAManToAngle 3 года назад

You really do a great job explaining this. It had been years since I learned this in business school. Very good refresher

@TheFinanceStoryteller 3 года назад

Glad it was helpful! I have related videos on payback period, WACC, etc. as well for you as a refresher: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@curtiscurry5775 2 месяца назад

You made it all make sense! Thank you!

@TheFinanceStoryteller 2 месяца назад

Wonderful to hear that!!! Thank you for watching and commenting. 😊

@nimidi2568 2 года назад

Shortest and best way to understand the concept. Thanks

@TheFinanceStoryteller 2 года назад

Glad it was helpful!

@notevoyadarminombre156 3 года назад

You deserve a cookie. Thank you very much for this explanation.

@TheFinanceStoryteller 3 года назад

You're welcome! Opportunity to buy me cookies, a cup of tea, etc. at: ru-vid.com/show-UCQQJnyU8fALcOqqpyyIN4sgjoin ;-)

@Anna_Australia 2 года назад

I finally found your video, which helps me a lot!

@TheFinanceStoryteller 2 года назад

Glad to hear it! More NPV, IRR, payback, WACC and related concepts discussed in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@jamesperry3837 4 года назад

_Your videos r_ *super.* _Concise and to the point of understanding._ *Tysm*

@TheFinanceStoryteller 4 года назад

You're welcome, James! Thank you for watching and commenting.

@JohnRMTurner 3 года назад

Great video. Thanks for explaining this with a simple example.

@TheFinanceStoryteller 3 года назад

Glad it was helpful, John!

@abheranmoodley4950 2 года назад

Thank you very much for this video! It is very clear and easy to understand.

@TheFinanceStoryteller 2 года назад

Glad to hear that, Abheran! Related concepts like WACC, payback period and crossover rate are covered in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@kedard134 Год назад

Thank you for explaining this is a simple no fuss manner.

@TheFinanceStoryteller Год назад

Yeah, let's get it done in 5 minutes, if we can, and move on to the next topic. 😎

@todddahlquist7584 4 года назад

I finally understand the difference - thank you!!

@TheFinanceStoryteller 4 года назад

Great to hear that, Todd! Happy to help. :-)

@abidullahkhamosh2099 4 года назад

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@TheExceptionalState 4 года назад

Clear and concise! Thank you!!!

@TheFinanceStoryteller 4 года назад

Nice to hear that! Thank you, Angus!

@janifahbadio6684 3 года назад

This is a simple and great explanation. Thank you so much :)

@TheFinanceStoryteller 3 года назад

Glad you liked it, Janifah! Thank you for watching and commenting. My follow-up video on NPV IR payback period scenarios might also be useful for you to watch: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@networkteamtools6528 3 года назад

you've made complicated things, simple.... well done✊

@TheFinanceStoryteller 3 года назад

Thanks a lot! 😊 Very happy to hear that!

@kevinharilal8288 4 года назад

Dude your videos are really good. I appreciate your assistance tremendously

@TheFinanceStoryteller 4 года назад

Thank you, Kevin! That's awesome. Working on my next video right now. Happy to help!

@AAA11546 4 года назад

Thank you, very clearly explained!!!

@TheFinanceStoryteller 4 года назад

Thank you for watching and commenting, Tomas! I made a follow-up video last week, playing around with several scenarios of investment and benefits. Hope you like that one as well! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@saodatkurmanayeva434 2 года назад

this helped so much, you're a saviour!

@TheFinanceStoryteller 2 года назад

Happy to hear that, Saodat! Please spread the word!

@kennethromanowski9614 5 лет назад

Excellent presentation. Concise and precise.

@TheFinanceStoryteller 5 лет назад

Thank you very much, Ken! Great to hear that. I think you might also enjoy the related video on ROI versus payback: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-o4of1uNSRis.html

@olayinkaafun5469 3 года назад

Concise and straight to the point. Thank you.

@TheFinanceStoryteller 3 года назад

Exactly, Olayinka! :-) Here's the link to related videos on capital budgeting that could be helpful for you as well ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@olayinkaafun5469 3 года назад

@@TheFinanceStoryteller Thanks alot.

@TheFinanceStoryteller 3 года назад

@@olayinkaafun5469 You're welcome! Let me know if you think any topics are missing, I am always looking for good topics for new videos.

@rummanamarzia1288 4 года назад

Thank u so much sir.. Understood many things what didn’t in class....

@TheFinanceStoryteller 4 года назад

Thank you, Rummana! Happy to hear that. And well done searching for additional information to expand what was covered in class! I think you will like my NPV/IRR scenarios video as well that covers these concepts with more examples: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@vanderpant2116 4 года назад

Thank you for a clear concise and easy to understand vid 😁

@TheFinanceStoryteller 4 года назад

Very happy to hear that! Thank you.

@Jhangerr 5 лет назад

Simple and good explanation. Thank you.

@TheFinanceStoryteller 5 лет назад

You're welcome! :-)

@meenamenon2219 2 года назад

so so lucid! THANK YOU

@TheFinanceStoryteller 2 года назад

Thank you, Meena! Related topics are in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@user-xp1rl2wt7y 4 года назад

Thank you for your easy and clear explanation.

@TheFinanceStoryteller 4 года назад

You're welcome!!!! Thank you for watching and commenting.

@cheriewong4548 4 года назад

omg you explained this so well... im so amazed!!!! THANK YOUUUUUUUUUU

@TheFinanceStoryteller 4 года назад

Happy to help, Cherie!!! :-)

@cheriewong4548 4 года назад

@@TheFinanceStoryteller Subscribed & liked. keep it up :-)!!!

@TheFinanceStoryteller 4 года назад

Wonderful. :-) Please tell all your friends!

@cortney4soul 2 года назад

The best breakdown i have seen.

@TheFinanceStoryteller 2 года назад

Thank you, Cortney! That is wonderful to hear. More capital budgeting videos in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@stevenyang9682 3 года назад

thanks a lot! this is much clearer than lecture!

@TheFinanceStoryteller 3 года назад

Great to hear that, Steven! Thank you for watching. I also cover related topics like WACC, crossover rate, and profitability index on my channel.

@nikitagorbachevskiy6664 5 лет назад

Perfect! Thank you!

@TheFinanceStoryteller 5 лет назад

You're welcome! I have related videos on payback method and ROI on my channel as well: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-o4of1uNSRis.html

@elanalistafinanciero Год назад

Excellent presentation, Thanks so much !!!

@TheFinanceStoryteller Год назад

You are welcome! 😊 Please spread the word!

@user-tp5ko7zk6g 9 месяцев назад

The best explanation. Thank you !

@TheFinanceStoryteller 9 месяцев назад

Thank you very much for the compliment. Related topics like WACC and payback period are discussed in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB

@jngf100 2 года назад

Very clearly explained - thanks kindly!

@TheFinanceStoryteller 2 года назад

You're very welcome!

@trevorspear5970 5 лет назад

Thank you that make sense now!!!

@TheFinanceStoryteller 5 лет назад

Great! Happy to hear that. :-)

@MM-zd4md 6 месяцев назад

awesome explanation. Thank you !

@TheFinanceStoryteller 6 месяцев назад

Good to hear that. Glad it was helpful! Videos on related topics like WACC and discounted payback are available in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB

@raquelm.w.7974 4 года назад

Very helpful, thank you!

@TheFinanceStoryteller 4 года назад

You're welcome, Raquel! The sequel to this video might also be useful for you. It covers various scenarios of investment level and benefits: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1ZTIwmn1Cm0.html

@daxiaohaha4172 4 года назад

Thanks, really enlightened video, thumps up!

@TheFinanceStoryteller 4 года назад

Wow, thank you so much! Happy to hear that.

@mirnahanger9054 3 года назад

Thank you, this was a very clear explanation or IRR.

@TheFinanceStoryteller 3 года назад

You're welcome! Happy to hear that. Related topics in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@endangeredspecies5005 4 года назад

i will bet a $10000 if the presenter is not from arabic descent. the accent is absolutely nourishing and left your spirit.

@TheFinanceStoryteller 4 года назад

Personally, I enjoy good videos regardless of the accent! ;-) But as you are asking, the accent is Dutch (i.e. from the Netherlands). I did spend a good amount of time delivering training in Abu Dhabi and Dubai, so had the pleasure of visiting the Middle East multiple times.

@shreeniwas048 5 лет назад

Wow very clearance of concept. You make it in simply.

@TheFinanceStoryteller 5 лет назад

Thank you! Glad you enjoyed it. :-)

@dreams_in_a_pie 4 года назад

Perfect!!! I understand what NPV and IRR are!

@TheFinanceStoryteller 4 года назад

Great to hear that! Thank you! :-)

@abidullahkhamosh2099 4 года назад

I did not understand where does this 35, 117 en (46) come from? how has he this calculated

@dreams_in_a_pie 4 года назад

@@abidullahkhamosh2099 For NRV project A 35 333+278+231+193-1000=35 Same calculation for project B and C

@poorvir9416 4 года назад

Thanks a lot Philip De Vroe!! 😊

@TheFinanceStoryteller 4 года назад

You're welcome, Poorvi Radhakrishnan! :-) Thank you for watching.

@Holland1994D 4 года назад

Hey je bent Nederlands! Thanks, duidelijk uitgelegd, jammer dat ik nu pas je video zie ipv voor mijn tentamen. Gelukkig snap ik het nu wel een stuk beter voor het hertentamen!

@TheFinanceStoryteller 4 года назад

Jazeker! Welkom! Beter laat dan nooit. ;-) Veel succes met je hertentamen. Hier is de link naar een playlist met alle NPV/IRR gerelateerde termen (ook payback, WACC, etc.): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@Zwart-in6vc 3 года назад

@@TheFinanceStoryteller wat is nou precies de relatie tussen de npv en IRR? Deze vraag krijg ik op mijn assessment

@TheFinanceStoryteller 3 года назад

@@Zwart-in6vc Dat draait om wat je als input neemt, en wat als output. Kort samengevat in het Engels: NPV Step 1) Determine nominal (undiscounted) cash flows , Step 2) Apply discount rate to calculate present values, Step 3) Calculate Net Present Value (NPV) by summing the discounted cash flows. IRR Step 1) Determine nominal (undiscounted) cash flows, Step 2) Set NPV at 0, Step 3) Calculate Internal Rate of Return (IRR) through trial and error, or Excel. Zie ook: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-aS8XHZ6NM3U.html

@kekelidenutsui6517 2 года назад

You made it all. Am loving it🔥👌

@TheFinanceStoryteller 2 года назад

Yes! Thank you!

@TheExceptionalState 4 года назад

Very clear. Thanks!

@TheFinanceStoryteller 4 года назад

You're welcome, Angus! Happy to help. :-)

@endragoth 9 месяцев назад

Thanks a lot for sharing, very educational and useful

@TheFinanceStoryteller 9 месяцев назад

My pleasure! Related concepts like WACC are discussed in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB Please spread the word to friends and colleagues.

@benedictgrochla5907 2 года назад

Pretty good, thank you!!!

@TheFinanceStoryteller 2 года назад

Happy to hear that, Benedict! Take a look at my capital budgeting playlist for related topics: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@slay9470 5 месяцев назад

Thank you bro you deserve a like

@TheFinanceStoryteller 5 месяцев назад

Happy to help! Have a look at the related videos in the NPV IRR WACC playlist as well, there could be more useful stuff in there: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB

@mrtural4977 4 года назад

Thank you very much for good explanation

@TheFinanceStoryteller 4 года назад

You're welcome! :-)

@mundheral.askari3450 3 года назад

Thank you so much, this is really helpful :-)

@TheFinanceStoryteller 3 года назад

You're very welcome! Great to hear that.

@mamtasaravanan985 2 года назад

Very nicely explained.Love your videos.

@TheFinanceStoryteller 2 года назад

Thank you so much, Mamta! 🙂 That is nice to hear. Please spread the word!

@rehanrana1 5 лет назад

Thanks so much. helped me alot.

@TheFinanceStoryteller 5 лет назад

Great to hear that. The related video on payback period might also be interesting for you to watch: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-FJjGi7gsK3A.html

@bobbydreamsforu 4 года назад

WoW !! Thank you very much.

@TheFinanceStoryteller 4 года назад

You're welcome, Satish! Glad to hear you liked it.

@bobbydreamsforu 4 года назад

Your explanation is beyond wonderful ❤️ Thank you brother !!

@TheFinanceStoryteller 4 года назад

@@bobbydreamsforu If you liked this video, then I recommend the related videos in the NPV IRR WACC playlist as well: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-N-lN5xORIwc.html

@tumil8256 4 года назад

Thank you so much...you’re the best

@TheFinanceStoryteller 4 года назад

You're welcome, Tumi! Welcome to the channel, please subscribe.

@FunnyAsian00 2 года назад

I hate math and I'm sociology major but I understood this guy is a genius

@TheFinanceStoryteller 2 года назад

Thank you, John! Happy to help. 😎

@nestrodamus Год назад

This is sooo good!!!!

@TheFinanceStoryteller Год назад

Thank you!!! More videos on related concepts like WACC in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@Michael-je5bn 2 года назад

Yes, very good stuff.

@TheFinanceStoryteller 2 года назад

Glad you enjoyed it, Michael!

@jonathanlewin9775 5 лет назад

GREAT VIDEO THX U!

@TheFinanceStoryteller 5 лет назад

You're welcome, Jonathan! Thanks for the feedback. :-)

@PeterTamura 4 года назад

Interesting, thanks for the great explanation. These calculations of course are subject to assumptions, it's not always easy to know the exact cash flow you will get in year 3. Also, if there are ways to reinvest the cashflows from year 1 and year 2 back into the project, the returns could be higher...

@TheFinanceStoryteller 4 года назад

Excellent points, Peter! I agree with you. I tried to keep it as simple as possible in the video. ;-)

@leoclarkin5944 5 лет назад

clearly understood, thx

@TheFinanceStoryteller 5 лет назад

Thank you, Leo!

@SharonD88 3 года назад

Wahoo I want to say thank you, your explanation is the best for me, really easy, 💖🙏thank you. I will check all your content. 👍1,000

@TheFinanceStoryteller 3 года назад

You're welcome 😊 I have related videos on WACC, profitability index, etc. as well for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html

@motalibhossain3971 4 года назад

very good explanation, thank you

@TheFinanceStoryteller 4 года назад

Nice to hear that, Motalib! Thank you for watching and commenting.

@DeshanTech 3 года назад

Thanks clear explanation.

@TheFinanceStoryteller 3 года назад

Great to hear that! Thank you! Please subscribe.

@DeshanTech 3 года назад

@@TheFinanceStoryteller Already done, Hit the bell icon too.

@zainabali5951 5 лет назад

Thanks... simple to understand

@TheFinanceStoryteller 5 лет назад

You're welcome! Happy to hear that! :-)

@zainabali5951 5 лет назад

@@TheFinanceStoryteller it's my honour...

@RahmatAli-yg9tv 9 месяцев назад

Excellent, thanks ❤

@TheFinanceStoryteller 9 месяцев назад

You're welcome 😊 Related concepts are discussed in the NPV IRR WACC playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html&pp=gAQBiAQB