Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...
A discounted cash flow, or DCF, analysis measures the value of a business or project, such as a new factory for your small business. This value equals the sum of all of the project's future annual ...
Residual value is the estimated value of an asset at the end of its useful life. It's used to figure out things like the value of a car at the end of a lease or how much equipment is worth after it's ...
Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...
Shareholder value is the return of an investment in a given company. Shareholder value is created when a company's returns exceed its cost of doing business. When a company's management team employs ...
Opinions expressed by Entrepreneur contributors are their own. No two businesses are worth the same amount of money. Whether you’re a lender looking to decide whether a business is a worthwhile ...
This article was written by David Mullen, Product Manager for Core Fixed-Income Analytics, and Fateen Sharaby, Business Manager for Index-Linked Products at Bloomberg. Credit futures, which started ...