Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

The net worth of a business is also known as its book value, or as its owners' (stockholders') equity. This figure can be computed relatively easily using information found on a company's balance ...

The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the time value of money, which is the concept that a sum of money today ...

With Berkshire Hathaway's book value per share over- or under-estimating the true value of its businesses, Warren Buffett prefers alternatives to this accounting metric.

Calculate NAV by dividing fund's total assets minus liabilities by outstanding shares. Regular NAV updates provide transparency and reflect real-time fund value. Investors use NAV to assess hedge fund ...