Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

The income statement provides a breakdown of sales and expenses, and these can be made or paid with either cash or credit. Because of certain accounting conventions aimed at matching sales and ...

Learn the differences between the perpetuity growth model and the exit approach for calculating terminal value in DCF ...

Small business owners frequently make decisions about how to invest money to increase profitability. Part of being a good business manager is the ability to analyze the income potential of long-term ...

MIRR is just like a net present value calculation. You need to choose discount rates, which is effectively the same as choosing financing and reinvestment rates. IRR is a discount rate used to make ...