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What are the Advantages of Net present value over Annual Rate of Return?
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Annual Rate of Return Calculator?
Annual Rate of Return Calculator Use this calculator to determine the annual return of a known initial amount, a stream of deposits, plus a known final future value.
What are the advantages and disadvantages associated with Net present value and internal rate of return as methods of investment appraisal?
http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_associated_with_Net_present_value_and_internal_rate_of_return_as_methods_of_investment_appraisal pls. what is answer provided for the qustion above
Difference between present value and net present value?
Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)
What is the meaning of the term net present value?
Net Present Value (NPV) means the difference between the present value of the future cash flows from an investment and the amount of investment.Present value of the expected cash flows is computed by discounting them at the required rate of return. For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000. The amount of investment ($1,000 in this example) is deducted from this figure to arrive at net present value which here is zero ($1,000-$1,000).A zero net present value means the project repays original investment plus the required rate of return. A positive net present value means a better return, and a negative net present value means a worse return.
How do you calculate rate of return?
by using the Net present value calculations.
If an investment project has a positive net present value then the internal rate of return is?
Positive present value indicates a successful investment. In terms of rate of return, a positive present value basically indicates that returns will be higher than the specified rate of return. Zero present values mean returns will meet your specified rate exactly. Negative present values mean returns will be less than required.
What is the value of a set of 1975 US uncirculated coins?
If you have obtained an annual uncirculated 1975 yearly set, its present value is: $15.00.
How do you calculate internal return rate?
by using the Net present value calculations.
Would an annuity value calculator show you the present value of an annuity?
Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.
Can a Present Value Calculator be used to compare mortgage rates?
Yes, you can campare mortgage rates using the present value calculator. you can also check compound interest, present value, return rate / CAGR, annuity, present value of annuity, bond yield and retirement.
Which one of the following discount frequencies will yield the largest present value give a stated future value and annual percentage rate.?
daily
A major advantage of the annual rate of return method is that it considers the time value of money True False?
TRUE
