Learn how to use an annuity table to calculate the present value of payments with examples and formulas. Ideal for financial professionals and individuals planning investments.

Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

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.

When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. Consider teaching students to calculate the issue price by using the net present ...

How to Link NPV to Free Cash Flow. The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow ...

Calculating a profitability index The next step is to use the information from the net present value calculation to determine a profitability index for the investment.