An even cash flow of regularly scheduled payments defines an annuity. If you borrow money to start your business, the monthly payments are calculated using an annuity formula. Two basic annuity ...

Learn what Cash Flow After Taxes (CFAT) is, how to calculate it, and why it's crucial for assessing a company's financial ...

Both organizations and private individuals invest their resources in order to earn profits on their investments. Profitability can be measured using either income or the rate of return. Income is the ...

The basic premise of finance is that money has time value -- a dollar in hand today is worth more than a dollar in the future. The study of finance seeks to make it possible to compare the value of a ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

DCF model estimates stock value by discounting expected future cash flows to present value. Using multiple valuation methods with DCF can enhance accuracy in stock evaluations. DCF's effectiveness is ...

A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...