In this video I have explained Net Present Value technique of Capital Budgeting. We have also solved a problem on NPV.
After watching this video you will be very confident in this NPV technique.
Here we have also seen the time value of money and how to discount the cash flows of an investment project.
⏱TIMESTAMPS
0:00 – Intro
0:08 – Concept
2:40 – Time Value of Money
6:26 – Format of NPV
8:21 – Problem
Previous Video: Average Rate of Return (ARR)
https://youtu.be/duAS8l4GcgM
Next Video: Internal Rate of Return
https://youtu.be/EUGU9q1gzR0
Financial Management Playlist:
https://www.youtube.com/playlist?list=PLVjZhvcpvcGr217YUFFD4pN87UoQ0aVR7
This is for the students of B.COM, BBA, CA INTER, CMA and any other accounting courses which has this chapter in its syllabus.
PDF Notes
https://drive.google.com/file/d/1DWE7uHSZksELsJsoac2FtDxuWUJvfwJO/view?usp=drivesdk
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@Bhanuprasad07
Thankyou sir every time clear my doubt watching your video 🙏😊
@mahvishkhan3439
Can anyone tell me why 1.10 is there when 1+ 10 =11? In the discounted formula. Moreover these cash flow will be given in question paper or is there another method to calculate them?
@Dessie-i8z
Thank you so much ❤
@23AUBA019-SRINIDHIMB.B.A
the cashflow in my sum was given as net cashflow before tax and after depreciation. should I add depreciation?
@user-dm6uf3rc1b
You are tasked with conducting an investment appraisal for a proposed project. The
project requires an initial cash outlay and is expected to generate cash inflows over a
period of five years with a disposable value of k25, 000. The Project also requires an
initial investment in working capital of k20,000 which is recoverable at the end of the
project.
Below are the projected cash flows for the investment:
Year Cash Inflow (K)
1 (5,000)
2 90,000
3 70,000
4 80,000
5 90,000
The initial cash outlay for the project is K200, 000. The required rate of return for the
project is 12%.
Required:
Using the information provided, perform the following calculations:
a) Calculate the payback period for the project. (3 marks)
b) Determine the net present value (NPV) of the project. (5 marks)
c) Calculate the internal rate of return (IRR) for the project. (8 marks)
d) Determine the benefit-to-cost ratio for the project. (2 marks)
e) Evaluate the feasibility and desirability of the investment project based on your
findings. (2 marks)
@Kalika18
1 watch
@SujeetBharti-k3c
"Excellent video! The way you explained NPV with real-life examples made it very easy to understand. Looking forward to more such educational content!"
@cynthiabanda6051
Thank you so much, this video has been very helpful.
@nungrigam6697
one of the best video as the voice is not annoying
@kelkloud24
5 years on and this video is still a Goldmine. Thanks to the instructor. Really found it helpful on a course in project management
@srijeshtamang4332
Scap value kaha use keya?
@rufaromatongo947
Thank you sir
@mydream4903
First semester to last semester depend on your video of my math class .
Thank you ❤
@Kxshitij
What if discount factors are not given
@ConceptsOfCommerce-it5bg
👍
@imela256-g6r
Am here watching not understanding welll😅😅😅Nkumba students come here small
@poulamidas7241
Hats off
@SAANVIIIEEEYY
bro tom is my exam so pls pls pls someone tell me ki cash inflow wala table aur pv factor wala table exam m given hoga ki nhi???!!!!!!
@nakulbhardwaj4816
my calculator dosen't work like tha(fx-100)
@betabababol
Your teaching skill are amazing sir❤❤❤
@gwhwmbrahma4444
what a simple video, love you brother 💝💝
@anjalisharmalu6076
Achi English bolte ho sir 😅
@ashrafhussain4073
What if tax was also given in it?
@swatiyadav504
Thank you sooooooooooooooi much😭🙏🏼💕
@ombhanushali7920
❤thank you Mam dil de pass karadiya apne I hope
@nooblepro5464
Who is watching it just a few hours before the exam
@dimple681
Again sir thank you sooo muchhh❤
@Pehelala
Watching 1 hour before test 🥹
@mnskmoin
Who is watching before exam in 2025
@Jagan007-y4c
I don't know why my sir calculate cumulative cash inflow in this type of question in my class at the time I think because of not equal cash inflows but we do that in pay back period if the cash inflows are not equal is that same thing applied on this ? Can you tell about this please
@MaylilyNinigi-dg9kt
What should I do while on year 1 there's an outflow as well as inflow
@BrendaNoto-fp5xe
But how did he find the discount factor
@lazarusmadondo9879
Me watching a day before exam
@himalaydave
Hii sir this explanation is really great so simple and love the way you explain. Just a small query shouldn't we go with project A with higher investment since it has higher percentage of npv respect to its cash out flow thank project Y.
@LeeFarashishiko-q5f
i have been here during My A level now am back again as a Uni student
@learn_with_Robiul
I am a student of class 9 , commerce background 😅🙃
From Bangladesh 😊
@lpmakaveli3933
When u divide 10% by 100 it gives you 0.01 not 10
@shreetika4003
Watching 1 hour before exam🥲
@AdritaGhanti
what should we do with thw working capital if it is mentioned in the question?
@MahalakshmiMahalakshmi-l4s
But question not discount value who calculate discount
@pidugujoshua9335
Tqsm sirrr😊
@Sun-v9m6z
Thank you sir 😊
@harshvrdhnshukla
Thankyou sir for your kind effort to teach us NPV. Our college teacher didn't taught us like this in simple elaborative manner.
Once again,
Thankyou sir. ❤
@vaishyasanskriti
Thankyou soo much ❤
@descentlife4105
Thank you so much for your help ❤