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 ...

QUESTION: I’m trying to decide whether or not to invest a large amount of money in new technology that will lower our production costs. A newly-minted MBA I just hired has completed something he calls ...

The time value of money sounds like one of those boring economic concepts that a small business owner doesn't have time for – but that would be wrong. Future value and present value are monetary ...

Because annuities offer advantages like regular lifetime payments, premium protection, tax-deferred growth, unlimited contributions, and various investment options, they should be a part of your ...

An analytical tool that establishes a base NPV for a project that can then be adjusted for the incremental NPV effect of separate elements of the project's overall potential sales.