From the course: Investment Evaluation

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Real talk: Net present value

Real talk: Net present value - Microsoft Excel Tutorial

From the course: Investment Evaluation

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Real talk: Net present value

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- All right, so I'm back here with Kevin, founder of Meet Kevin and Meet and Done. This time we're gonna talk about net present value. And when I think of net present value I think immediately of overhead costs, discount rates, all right, and so, how important is NPV to you, and how do you use it in decision making for business? - Yeah, absolutely, the interesting thing from an entrepreneurial point of view is initially, when you first start a business, every NPV count you run I so negative. It's very depressing. So ultimately, I kind of just don't. But, when it becomes very important is when you start developing your business, and now you have to decide between options within your business. Do you but another sprinter van? So we expand the business with different tools? Do we buy a concrete mixer? Where do we want to spend? Where do we think we're gonna get a better yield? But also, in terms of, where do we want to invest business profits? That's where NPV is really gonna be a…

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