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A positive net present value indicates that the projected earnings generated by a project or investment (in present dollars) exceeds the anticipated costs (also in present dollars). This concept is the basis for the Net Present Value Rule, which dictates that the only investments that should be made are those with positive NPVs.
Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. ... For example, if a retail store is thinking of opening a new ...
The positive predictive value (PPV), or precision, is defined as = + = where a "true positive" is the event that the test makes a positive prediction, and the subject has a positive result under the gold standard, and a "false positive" is the event that the test makes a positive prediction, and the subject has a negative result under the gold standard.
Flowchart for a typical DCF valuation, with each step detailed in the text (click on image to see at full size) Here, a spreadsheet valuation, uses Free cash flows to estimate stock's Fair Value and measure the sensitivity of WACC and Perpetual growth
Time value of money problems involve the net value of cash flows at different points in time. In a typical case, the variables might be: a balance (the real or nominal value of a debt or a financial asset in terms of monetary units), a periodic rate of interest, the number of periods, and a series of cash flows. (In the case of a debt, cas
It is a measure of the number of times the cash flow over the life of the project can repay the outstanding debt balance. The Loan life cover ratio (LLCR), similarly is the ratio of the net present value of the cash flow over the scheduled life of the loan to the outstanding debt balance in the period. Other ratios of this sort include:
The libraries, which are embedded and run centrally on the database, include more than 450 individual functions similar to those found in Microsoft Excel spreadsheets. The individual functions are grouped and sold as six separate libraries based on usage: finance, statistics, math, engineering, unit conversions and strings.
Examples of financial calculators are the HP 12C, HP-10B and the TI BA II. [4] A wide number of graphing calculators, like the Casio FX-9860GII, the Texas Instruments TI-89 Titanium, and the Hewlett Packard HP 48gII include complex financial calculations, as well as spreadsheet applications such as Microsoft Excel, LibreOffice Calc, and Google ...