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 ...

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

To show you how to calculate the net asset value of a hedge fund, we'll look at the financial statements of Pershing Square Holdings, a publicly traded "hedge fund" that's managed by Bill Ackman.

So, skipping all the complicated finance theory that isn’t relevant to most main street business owners, let’s quickly determine how much your business is worth.

To calculate a missing account on an income statement, first we need to understand how to read one Income statements are meant to be read from the top to the bottom.

Sometimes, though, you want to know the cost of debt to calculate a cost of capital ratio. To do so, just divide the pre-tax cost of debt by total debt outstanding.