How to Calculate Net Present Value, Annuity & Perpetuity | Corporate Finance Institute

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: courses.corporatefinanceinstitute.com/courses/f…

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

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