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 ...

Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. Learn about our ...

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 ...

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 ...

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 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Net worth is calculated by subtracting total liabilities from total assets. Your net worth can fluctuate over time. Having a negative net worth is not necessarily problematic. Income isn’t the only ...

Calculate NAV by dividing fund's total assets minus liabilities by outstanding shares. Regular NAV updates provide transparency and reflect real-time fund value. Investors use NAV to assess hedge fund ...