Why You NEED to know the Time Value of Money Formula (Excel NPV function)

I was fascinated when I first came to Siena, Florence where the first Italia bank located.

Thats a dumb saying as it does not adjust value for inflation.

I have seen 10+ tutorial about npv but dont understand fully but now i understand. Thanks my Lady Excel Lord Leila Gharani. I always ..............You

I didnt understand the concept of discount rate?😳 who is gonna give us dicount?🙏🏻🤦🏻‍♂️🚬

I appreciate the clarity, the voice renders it to comfort in listening

Thanks for your many helpful videos. Wondering if you can help me understand the MIRR function (MIRR(values,finance_rate, reinvest_rate). When I change the finance_rate, the result of the function does not change? Not sure why? Can you explain this function please. Thanks.

Thank you so much Leila you are a gem

I got another question. So I am doing the =pmt and =nper functions and in the function arguments box you are always supposed to put 0 in the FV future value. ( that's what my cheat sheets says) I am wondering if there is ever a situation where the FV is not 0. I would like to see an example of where we would type something other than 0 for the FV. when doing a pmt or nper function. I ask this question because you don't know if a video tutorial will cover a specific question until you watch the whole video. for so many questions you can't tell by the title of the video if will cover the specific thing you are wanting to know.

Is it possible do something like this over the period of a year rather than 4 years? so payments would be on a monthly basis rather than yearly?

If there a way you cab create a video that uses goal seek to derive at the rate using the npv function?

سلام.ممنون بابت مطالب کاربدی که مطرح می کنید

Hi Leila, You have explained the concept of npv with the actual calculation part and then proceeded on to the excel fuction. So it is easy to understand the concept intuitively, otherwise the excel fuction would have remained a blackbox. Thank you.

Absolutely brilliant suite of videos! Since I discovered Leila’s videos, I’ve been trying to learn the tips and tricks in Excel. Your explanations of some basics accounting and investment analysis are so clear and easy to understand.

Also CONGRATULATIONS on getting 2m followers too! I remember you were on about 1.2m when I came across your videos. That was only a few months ago!

Very well done Madam.

Do you want to me my mum ?🥺

WELL PRESENTED. THANKS.

This is the best explanation I've ever heard, never understood this before... Thanks!

Hi Leila

I have question- could you help me in creating a worksheet, which will copy a cell value from sheet 1 to sheet 2 automatically and when I add sheet 3 it will automatically copy the cell value from sheet 2.

For example I have cell value of 300 in cell C5. Now when I add a sheet c5 gets copied to a1 from sheet1. Next when I add Sheet 3 the cell value of c5 which can be 500 in sheet 2 should get copied to sheet 3 in cell a1 automatically as 500

concise & clear

Thanks Leila! Thumbs up!!

我们学到 present value = future cash flow / (1 plus disvount rate) Number period
哇塞，太牛🐮

You explain this better than my accounting books and teachers.

Thank you a million :)

thanks a lot for excellent explanation. great

Simple and clear as usual, thanks Leila!

Good Work! Great content

Hi, loved your video! Do you have any teaching videos that do not start from Year 0 or Year 1 but rather problems based on years (for example 3 to 8 or 5 to 10 etc etc)?

thanks.....

Its incredible how easy it is to understand and how difficult some teachers make it look

Another excellent video. I am embarrassed to keep on saying how good your videos are. People will think I'm just a fan without a real background in business to be a real judge of the quality of the presentation. Just so you know, I have over 40 years as a senior executive in billion-dollar companies, and I have personally done thousands of presentations in Excel, Powerpoint, pertaining to various subjects including finance. When I say I think your presentations are excellent, I do mean excellent. I wish I had your training when I was in business. Thank you for all of your videos.

Last 2 videos you left reproduction list initial topic, basic accountant

Excellent, thanks Leila.

Leila is an excellent teacher.

I'm confused with the last example... Shouldn't minimum return be the profit that will be made by machines in 4 years?

If yes, 6% is not discount rate... Discount rate is missing.
Also, 6% of 50 000$ is 3000$, which means that the goal is still not reached...

I think that to fulfill the "minimum return" requirement, there is a formula missing comparing NPV and expected return. And an actual discount rate is missing...

Please correct me if I'm wrong, I'm not in accounting, I'm an engineer... Just interested in variety of topics, so trying to understand :-)

Good thing there are like you here in YT discussing these things in a very knowledgeable and clear way! :)
Maybe you can add to your next video about WACC, NPV, IRR, FV and Ratio analysis. This will be good for MBA and accounting students like me!

Thank you very much! Much support! <3

May I request permission to use some of your visuals. I am a CPA from the Philippines. I will just indicate (Courtesy of: Leila Gharani). Thank you.

Thanks. You are doing a great job. Could you please make a video showing how to make coupon schedule of bond investment quickly?

Fantastic video, Leila. Thanks to it's simplicity I have finally grasped the concept of NPV!!!!

Excellent video and explanations. The authors of Accounting text books should watch this video and learn to present in a clear manner.

Thanks Ma'am

Would be useful to elaborating XNPV too, it is more accurate and useful

Leila, you are amazing in explaining Excel in such a clear and easy manner!

You should considering lecturing...combining content with tools great value

Amazing!!!!!!!!!!!!!!!

NPV reminds me, "A bird in the hand (right now) is worth more than two in the bush".
Wonderfully explained. Even the non finance guys can easily follow this.

This took my back to my Series 7 and 66. Usually I get simple Excel tips, but wow this a great refresher.

I just love the way you explain. You make excel so easy. Thanks

Hey Leila! This series is truly useful! Please keep going...

One pitfall to be wary of is to calculate the rate you need to make the investment worthwhile (in terms of npv) then to let yourself be convinced (with ad hoc reasoning) that rate is perfectly reasonable and achievable. You really need to understand what rate you need before you work out what the npv is for a particular investment!