Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...

Raiffa, Howard. "Methods of Calculating Net Present Value and Internal Rate of Return, Programmed Exercises." Harvard Business School Supplement 171-261, December 1970. (Revised May 1991.) ...

Capital budgeting decisions are among the most important decisions a business owner or manager will ever make. Which assets to invest in, which products to develop, which markets to enter, whether to ...

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. But like many methods in finance, it is not the ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Rate of return represents the percentage net gain or loss of an investment's initial cost over a period of time. The rate of return calculates the percentage change from the beginning to the end of a ...

The net present value calculation is a popular method used by business managers to evaluate the profitability of different projects. It is easy to use but it also has certain limitations. Advantages ...

Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

Credit: By discounting every future $3,000 cash flow back at a rate of 10%, and subtracting the initial cash outlay of $15,000, we arrive at a net present value of $3,433.70 for this project. Under ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...

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. But like many methods in finance, it is not the ...