Economic analysis of climate change and climate policies is fraught with many problems. Uncertainty and imprecision surround fundamental scientific and economic factors, such as, for example, how much ...

Net present value (NPV) is a popular decision-making criteria used by firms to make key, crucial choices about how to ...

IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount rates. BUSINESS ...

In economic analysis, the concept of time value of money is considered a fundamental axiom: a self-evident truth that needs no further proof or explanation. It is the simple fact that in all but the ...

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 ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...