Net Present Value (NPV) and Internal Rate of Return (IRR)

Net Present Value (NPV) and Internal Rate of Return (IRR)

Abdulla Javeri

30 years: Financial markets trader

Abdulla introduces the concept of Net Present Value, or the NPV, and the Internal Rate of Return also known as the IRR.

Abdulla introduces the concept of Net Present Value, or the NPV, and the Internal Rate of Return also known as the IRR.

Join now to start learning today

Finance Unlocked is the video learning platform built for finance professionals.

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Net Present Value (NPV) and Internal Rate of Return (IRR)

5 mins 39 secs

Overview

Investments normally require upfront payments that lead to expected future benefits. Calculating net present value and internal rates of return are essential to determine projects that generate future cash flows. NPV finds the nominal value of a project while IRR finds the minimum required rate of return.

Key learning objectives:

  • Define NPV and its shortcomings

  • Define an IRR

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

Related videos