Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

In the world of finance, an annuity is a contract between you and a life insurance company in which you give the company a lump sum or series of payments, and in return, the insurer promises to ...

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...

Too many financial decisions are made without factoring in the time value of money. Whether providing financial planning advice related to a client’s retirement, advising a client about a business ...

John Egan is a veteran personal finance writer whose work has been published by outlets such as Bankrate, Experian, Newsweek Vault and Investopedia. Michael Adams is a former Cryptocurrency and ...

When a company is making capital budgeting decisions -- whether it's something as small as buying a new copier vs. servicing an old one or as big as entering a new market -- it must weigh the expected ...

Begin with the following formula:=PV*(1+R)^NEither write this formula in an Excel spreadsheet cell or elsewhere for reference. Enter the present value in an Excel spreadsheet cell in place of "PV," ...

Lifetime value (LTV) is a significant metric that helps estimate the growth of a company. By comparing LTV to customer acquisition cost, the results can help make crucial decisions. This might include ...

Here’s what you need to know about two terms related to annuities — present value and future value. Present value of an annuity vs. future value of an annuity: What’s the di ...