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Basics:
Yield
Net Present Value
Effective rates:
Savings Plan
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Loans:
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Retirement provision:
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Calculating of the net present value.
The net present value is also called "fair value" or "time value".
Online calculator for the computation of the
net present value
(NPV) of a pending row of payments and yields.
Basically, the NPV is the value of a security, contract or goods at the present time. This method is also used to estimate the value of companies and is then called the DCF-method. DCF stands for Discounted Cash Flows. Here, the amount of the discount for a payment depends on the comparison interest rate and the date of the payment.
For investments, the net present value is an important indicator. Only investments that offer you a positive net present value are considered to be worthy to pursue.
*but the cash flows are not only the disbursements or dividends a company generates.
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input of data-->
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NPV calculator--> Start
Please change example values with your numbers.
Name of the computation:
How high is the fair compensation for a contract that shall be finished before expiration? This question is answered by the net present value (NPV). The NPV gives the value of pending payments (e.g. secondary market fund portion) at today's time.
It is important here to indicate an interest rate for comparison, which is taken as a basis the computation. This comparison interest rate should be the effective interest of an alternative investment, for example 10Y bonds. The comparison interest rate should also reflect the risk that the pending payment may not be processed and whether the money is liquid or fixed in the investment.
With a comparison net yield of 0% the
NPV
is the sum of the pending payments.
Comparison interest:
% pa.
How many payment are still pending?
5
10
15
20
25
30
40
Value at:
(= may be today, date of buy or date of investment)
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Net present value
Valuation using discounted cash flows (DCF)
Performance of the system
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