The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a project ...

Net sales show the true revenue your business makes from selling products or services, after subtracting returns, allowances and discounts. To find net sales, begin with your total sales and deduct ...

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 ...

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 ...

Of your many responsibilities as a small business owner, ensuring that your employees’ pay is calculated accurately ranks near the top of the list. That includes withholding the correct amounts for ...

When analyzing a company's results for investment purposes or in order to provide a valuation of the business, accountants will take average earnings or net income into account. A simple average of ...