Capital Recovery Factor – Meaning, Formula, and Example
Capital Recovery Factor (or CRF) is the ratio that helps to find the present values of a series of equal payments. The equal payments… Read Article
Discount Rate
Opportunity Cost of Capital – Concept, Example, and Consideration
A financial cost of capital, in simple words, is the average cost of financing the current projects. And this cost of capital is always… Read Article
Compounding vs Discounting – All You Need to Know
Time Value of Money is an important financial concept and primarily refers to the value of money at different points in time. Two methods… Read Article
Importance of Time Value of Money
Time value of money (TVM) is the most fundamental and important concept in finance. This concept basically means that the money you have at… Read Article
Present Value of Uneven Cash Flows
Cash flows represent the inflow of cash for a business. Regular cash flow and proper planning thereof are very crucial for all businesses. However,… Read Article
Discounted cash flow
Meaning of Discounted Cash FlowDiscounted cash flow analysis uses forecasted cash flows of a company to discount them to its present value. It makes… Read Article
Discount Factor Formula – How to Use, Examples and More
In the financial world time value of money is one of the essential criteria to ascertain and decide the projects or investments. The discount… Read Article
Tax Shield – Meaning, Importance, Calculation and More
What is Tax Shield?A Tax Shield is the use of taxable expense that helps a business to lower its tax liability. Or, we can… Read Article
Present Value of Annuity
The present value of an annuity is a very interesting concept used by every one of us in day-to-day life. As the name suggests,… Read Article
Present Value Table – Meaning, Important, How To Use It
A Present Value table is a tool that assists in the calculation of present value (PV). To get the present value, we multiply the… Read Article
Discount Rate – Meaning, Importance And More
A discount rate is a crucial concept in finance and could mean two things. The first is about the interest rate that the central… Read Article