Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...

Perpetuities pay a fixed annual sum; interest rate calculated by dividing payment by price. Example: $5,000 annual perpetuity for $60,000 has an 8.33% interest rate. Validate investment value using ...

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Texas Roadhouse, Inc. (NASDAQ:TXRH) as an investment opportunity by taking the expected future cash ...