Net Present Value
power point
Discipline Finance
Description
Teaching Net Present Value (NPV) & Future Value (FV)
You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:
Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:
You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:
Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:
Explain NPV and FV.
Describe the factors that are used in the NPV and the FV formulas.
Give an example of how to use the formulas for NPV and FV for a stock purchase.
Summarize the differences between the two formulas and the purpose of using each.
Develop a 10- to 12-slide PowerPoint Presentation (excluding title slide and reference slide) that cover each of the above topics. In the slide notes, include your explanations for each topic above. You must use a minimum of two scholarly sources
answer preview
The net present value in economic terms, can be used to describe a value of a certain amount of payment that is going to be received in the future compared with the current value of money(Dayananda,2002).
It is true that, the value of money will in most cases change over a certain duration of time. Hence, in such cases, it is prudent to use NPV to factor in changes in the value of money when making investments.
When using NPV one will realise that the value of a certain amount of money might be worth less or more in the future.
Such changes in the value of money will create ease in making the decision of whether or not to invest in certain venture …………………………….12 slides