This excel tutorial shows how to calculate the net present value (npv) of an investment. This is an example that i use in my introductory managerial accounting course to teach the concept of present value when a guaranteed residual exists.
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Also see/hear budgeting & internal rate. From observed inferences and for lease vs. Accounting for a capital lease with guaranteed residual value, showing how to setup and calculate the amortization schedule (using effective inte.
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