A business is thinking about purchasing a new machine at a cost of USD$5,000,000. The machine is going to be used for four years to produce… — A business is thinking about purchasing a new machine at a cost of USD$5,000,000. The machine is going to be used for four years to produce products. The rate of discount to be used was set by the manager at 10% as inflation in the country was forecasted by the central bank to be around 10% in the next few years. The annual Net Cash Flows are showed below. What is the Discounted Payback Period for this investment?

STEP 1: Discount (bring to the present value) the Net Cash Flows that will occur during each year of the project. Discounted Net Cash Flow… — STEP 1: Discount (bring to the present value) the Net Cash Flows that will occur during each year of the project. Discounted Net Cash Flow is calculated by multiplying Net Cash Flow by a Discount Factor (%). Remember that: Net Cash Flows = Cash Inflows - Cash Outflows

Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment with taking discounting… — Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment with taking discounting into consideration. https://www.superbusinessmanager.com/discounted-payback-period-of-an-investment/

Here is my personal list of interesting blogs about investing on the stock market. These are not purely investment blogs, but their authors… — Here is my personal list of interesting blogs about investing on the stock market. These are not purely investment blogs, but their authors rather focus on the overview of how the whole stock market works, wealth management and economics in general. The websites on the following list are my favorite blogs about stock market investing. They consist valuable information on financial management, investments in different asset classes, modern financial markets, investor psychology, personal finance using data analysis, portfolio management, financial planning and asset management, etc.

This article will help you to find out how much $$$ you will earn from your investment: — This article will help you to find out how much $$$ you will earn from your investment: https://www.superbusinessmanager.com/net-present-value-npv-of-an-investment/

Net Present Value (NPV) shows the cash value return from the investment with taking discounting into consideration. — Net Present Value (NPV) shows the cash value return from the investment with taking discounting into consideration. Why is Net Present Value (NPV) of a project important? Net Present Value (NPV) gives today’s numerical cash value of the estimated future Net Cash Flows (or Net Profits) resulting from an investment considering the time value of money as it employs the discounting concept. Or simply, net earnings in USD$ from the investment adjusted for inflation.

In order to do discounting properly, you shall use the discount factors to obtain present values of future Net Cash Flows. You need to… — In order to do discounting properly, you shall use the discount factors to obtain present values of future Net Cash Flows. You need to multiply the Net Cash Flow by the appropriate discount factor from the discount table. https://www.superbusinessmanager.com/what-is-discounting/

Discounting takes ‘time value of money’ into consideration. Time value of money means that USD$1 in hand today is worth more than USD$1… — Discounting takes ‘time value of money’ into consideration. Time value of money means that USD$1 in hand today is worth more than USD$1 promised at some time in the future. https://www.superbusinessmanager.com/what-is-discounting/

Discounting is the process of bringing to the present value the future Net Cash Flows that will occur during the lifetime of the project… — Discounting is the process of bringing to the present value the future Net Cash Flows that will occur during the lifetime of the project. Specifically, reducing the value of future Net Cash Flows (or net profits) to give them their current value in today’s terms.