The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a project ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...

Shareholder value is the return of an investment in a given company. Shareholder value is created when a company's returns exceed its cost of doing business. When a company's management team employs ...

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 ...

Par value is an arbitrary low value assigned to shares to meet legal requirements. To compute par value of issued shares, multiply the number per share by total shares. Low par value reduces financial ...

Residual value is the estimated value of an asset at the end of its useful life. It's used to figure out things like the value of a car at the end of a lease or how much equipment is worth after it's ...

Your car starts to depreciate once you drive it off the dealership and will continue to lose its value over the years. However, the value significantly drops after an accident, even if you get the ...

Shareholder value is the return of an investment in a given company. Shareholder value is created when a company's returns exceed its cost of doing business. When a company's management team employs ...