Understanding Net Present Value, Payback Approach, and Investment Analysis

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Explore the concepts of Net Present Value (NPV), advantages and disadvantages of NPV, the payback approach, evaluation of laundromat investment parameters, and calculations to determine whether an investment is viable. Also, learn about renegotiation of deals, different NPV scenarios, and conclusions on investment decisions.

  • NPV
  • Payback Approach
  • Investment Analysis
  • Finance Concepts
  • Decision Making

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Presentation Transcript


  1. UNIT 4 IP Finance 310 Instructor: Date:

  2. WHAT IS NET PRESENT VALUE?

  3. ADVANTAGES AND DISADVANTAGES OF NPV

  4. WHAT IS THE PAYBACK APPROACH?

  5. ADVANTAGES AND DISADVANTAGES OF THE PAYBACK APPROACH

  6. LAUDROMAT INVESTMENT PARAMETERS

  7. NET PRESENT VALUE CALCULATION

  8. PAYBACK CALCULATION

  9. DISCUSS WHETHER OR NOT IT IS A GOOD INVESTMENT

  10. RENEGOTIATION OF AN ALTERNATIVE DEAL

  11. SHOW DIFFERENT NPV

  12. SHOW DIFFERENT PAYBACK

  13. CONCLUSION

  14. REFERENCES Knight, D. (2022) Principles of Finance . OpenStax. https://aiu.vitalsource.com/books/9781951693541

  15. ANY QUESTIONS?

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