Financial Modeling Tutorials by CFI - How to Calculate Net Present Value, Annuity & Perpetuity

We explore the concept of the “time value of money” and how to calculate net present values and future values using compounding and discounting techniques. Learn how the present values of annuities, perpetuities, and growing perpetuities can be calculated using NPV and DCF. Enroll in our full course and earn a certificate to upgrade your career: http://courses.corporatefinanceinstitute.com/courses/financial-math-corporate-finance Chapters: 00:00 - Discounted Cash Flows Overview 00:28 - The Basic Idea 01:23 - The Discount Rate 01:55 - The Time Value of Money 03:11 - The General Formula 03:49 - Compounding and Discounting 04:25 - Net Present Value 07:43 - NPV Analysis Exercise 08:05 - Annuities Introduction 08:40 - Understanding Annuities 09:28 - The Annuity Factor 10:16 - Annuity Tables 12:42 - Annuity Exercise 12:57 - Perpetuities 13:41 - Perpetuity Example 14:29 - Constant Perpetuity 14:55 - Growing Perpetuity 16:32 - Prize Draw Exercise 16:54 - Discounted Cash Flows Conclusion FREE COURSES & CERTIFICATES Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://loom.ly/us5oJEw ► Excel Fundamentals: https://loom.ly/4KnYciU ► Accounting Fundamentals: https://loom.ly/xHJgJO4 ► Reading Financial Statements: https://loom.ly/2wrcPw8 ► Fixed Income Fundamentals: https://loom.ly/DZdjDA0 About Corporate Finance Institute: CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the world's top universities, investment banks, accounting firms, and operating companies. By taking our courses, you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical, with step-by-step instructions to help you become a first-class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections Join us on social media! LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute #NetPresentValue #Annuity