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Net present value and Rate of return

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Net present value and Rate of return

Net present value vs. Rate of return

In finance, the net present value (NPV) or net present worth (NPW) is a measurement of profit calculated by subtracting the present values (PV) of cash outflows (including initial cost) from the present values of cash inflows over a period of time. In finance, return is a profit on an investment.

Similarities between Net present value and Rate of return

Net present value and Rate of return have 8 things in common (in Unionpedia): Capital budgeting, Cash flow, Finance, Internal rate of return, Profitability index, Risk-free interest rate, Time value of money, Yield (finance).

Capital budgeting

Capital budgeting, and investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings).

Capital budgeting and Net present value · Capital budgeting and Rate of return · See more »

Cash flow

A cash flow describes a real or virtual movement of money.

Cash flow and Net present value · Cash flow and Rate of return · See more »

Finance

Finance is a field that is concerned with the allocation (investment) of assets and liabilities (known as elements of the balance statement) over space and time, often under conditions of risk or uncertainty.

Finance and Net present value · Finance and Rate of return · See more »

Internal rate of return

The internal rate of return (IRR) is a method of calculating rate of return.

Internal rate of return and Net present value · Internal rate of return and Rate of return · See more »

Profitability index

Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.

Net present value and Profitability index · Profitability index and Rate of return · See more »

Risk-free interest rate

The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

Net present value and Risk-free interest rate · Rate of return and Risk-free interest rate · See more »

Time value of money

The time value of money is the greater benefit of receiving money now rather than later.

Net present value and Time value of money · Rate of return and Time value of money · See more »

Yield (finance)

In finance, the yield on a security is the amount of cash (in percentage terms) that returns to the owners of the security, in the form of interest or dividends received from it.

Net present value and Yield (finance) · Rate of return and Yield (finance) · See more »

The list above answers the following questions

Net present value and Rate of return Comparison

Net present value has 48 relations, while Rate of return has 58. As they have in common 8, the Jaccard index is 7.55% = 8 / (48 + 58).

References

This article shows the relationship between Net present value and Rate of return. To access each article from which the information was extracted, please visit:

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