Learn how to use an annuity table to calculate the present value of payments with examples and formulas. Ideal for financial professionals and individuals planning investments.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return.

Discover why it is important to include changes to net working capital as a component in calculating the net present value (NPV) of a company.

John Egan is a veteran personal finance writer whose work has been published by outlets such as Bankrate, Experian, Newsweek Vault and Investopedia. Michael Adams is a former Cryptocurrency and ...

How to Link NPV to Free Cash Flow. The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow ...

To find an investment's interest rate, substitute price, face value, and duration into a formula. For T-bills, subtract purchase price from face value, divide by face value, adjust for term. Online ...

Calculating a profitability index The next step is to use the information from the net present value calculation to determine a profitability index for the investment.