How To Calculate Net Present Value Npv
In general terms, Net Present Value (NVP) signifies the time value of money through periodic fluctuation. NVP calculations are performed to determine the outcome of various investment-related decisions. The basic concept of NVP revolves around the fact that a sum of money carries greater importance in present times as compared to future mainly because the investment returns of that amount would certainly be higher today than tomorrow.
Most capital budgeting decisions are based on the Net Present Value (NPV) calculations. You can easily predict the percentage of forthcoming cash flows to a certain extent by computing its Net Present Value (NPV) correctly. This calculation takes 3 main factors into consideration namely: The overall time-period of cash flow, rate of discount and net amount of cash flow.
Understanding the concept of Net Present Value (NPV)
If offered $ 200, would you choose to receive the amount at the moment or a year from now?
The obvious choice would certainly be to receive the amount at this moment for the simple reason that the net value of $200 would decrease in a year's time, thereby fetching you reduced investment returns.
Net Present Value (NVP) calculations are therefore performed by comparing the total worth of a monetary sum received today to the amount received in future by subsequently incorporating the time period and rate of interest. This method helps in arriving at the projected value of financial investment made by a large-scale organization.
Let us take another example to comprehend the significance of Net Present Value (NVP) calculations while undertaking major financial decisions:
If a company is planning to launch a new product in the market, it is vital to be familiar with its overall initiation expenditure and the approximate percentage of cash flow that is expected over a period of time. On the basis of the projected incoming cash flow, one can easily use the NVP formula to determine the time limit within which the company would be able to recover the initial expenditure incurred on the product launch. The result of this NVP calculation would also help in analyzing if it is a viable option to launch this product in the first place and if this investment is worth taking the risk.
Simplest way to Calculate the Net Present Value (NPV)
??? Determine the preliminary investment amount for an upcoming project, also referred to as the project cost. For example, let's assume the outlay of funds for this project as $100
??? Establish the minimum discount rate for this assignment over a period of 24 months. Let's assume the discount rate to be approximately 3%
??? Ascertain a specific value (Value1, Value2 etc.) to the cash payment that is most likely to be made at the end of two years. Let's say your project guarantees a definite return of $200 after 2 years
??? Now compute its Net Present Value (NPV) by using the formula
NPV = C*t/ (1 + r)? - C, whereby
(C*t stands for return after period, C. stands for project cost, t stands for the time period and r stands for the discount rate)
NPV = $200/ (1+.03)?? - $100
Therefore the solution comes to
NPV = $200/ (1.03)?? - $100 = $200/1.0609 - $100 = $188.52 - $100 = $88.52
With a Net present value of $88.52, this investment is worth the risk as it promises returns that is almost as much as the original investment.
You can also use an online NPV calculator in order to determine if the investment on a forthcoming project would grant favorable returns in the future.
Managing A Web Development Project
Managing a web development project requires a lot of planing. It is important to describe exactly what we are getting down to create. One of the team members (not necessarily a programmer) should make a functional specification document listing down all the requirements based on the various communications with the client. It is important to get the approval from the client on the FSD. Next step is to share this document with all the Team members and then hold a meeting.
Meetings are very important and help bring the team spirit in the team members.
The project must be broken down in small tasks. A solid schedule is then built up by asking each team member how long each task will take to complete. Based on the discussion, the schedule listing down all the tasks with their start date and end date is prepared and shared with all the team members. This gives a sense of empowerment to the team and builds confidence in the schedule. The actual web development should start only once all the team members are in agreement over the schedule.
Time keeper should be there to track the progress of the web development and to ensure the timely completion of all the tasks. There is no harm in extending the deadline for a task if it has not been completed in the stipulated time. Set a new schedule and stick to that.
Don't forget to throw a party once the project is completed.
We at technoscore having completed more than 250 web design projects know the art of web design project management . With more than 8 years of experience in web design and development, you can bank on us for the best of breed technology solutions.
Are You Worried About How to Deal With Notice of Levy
There are many things in life that can scare us to no end. Notice of Levy sent by Internal Revenue services (IRS) is one of such missives that can be very frustrating. Receiving such a notice is similar to getting punched on the face. IRS is a potent agency backed by Federal government and can exercise all the power in order to get the taxes collected. The IRS is empowered to collect the taxes, penalties, and interests from the taxpayers by any means that it deems necessary.
All the taxpayers who owe taxes to the federal government are notified by the IRS. The tax lien is one of the most efficient ways used by IRS to collect back the unpaid taxes. If IRS has filed a lien against you by sending you a notice of levy, it is important to know that IRS can even seize the money in your bank accounts. It can also seize your property and even your wages to reimburse for the tax payment that you owe to the government.
Delinquent tax payers have to deal with unpaid taxes sooner or later. IRS tries to collect back the taxes but when it fails to do it repeatedly, it begins with seizing the assets by its levy process. When the wages get attached to the process, it is termed as wage garnishment. If you are worried about seeking help to stop wage garnishment, you should get in touch with IRS professionals. Seek services of a professional and successful tax attorney. Look online to find a competent provider near your vicinity.
If you are on the look to find a good attorney or tax relief service in order to stop IRS levy, you can seek benefit from the information mentioned below:
1 Do not hesitate to enquire about the qualifications of an attorney before hiring him/her for your case.
Banking upon an experienced provider is important in order to make a reliable choice.
3 Go for the attorney or service that is easily accessible. Make sure that you remain in contact with your tax professional after the offer has been filed - in case any need arises.
4 It is imperative to review the complete offer in compromise that your attorney prepares for you.
Once the IRS bank levy notice has been delivered, IRS gives a 30-day period to the taxpayer before it begins with the levy procedure. Make sure that you discuss all the facts related to your case with your tax attorney. Beware of how the procedure will progress and tax appeal will be handled. A tax levy notice sent to taxpayer by IRS is an indication that a taxpayer no longer can escape from the payment of taxes. However, the services of a competent tax relief attorney can be of immense help in this hour of need where a structured management can save you from the stress and hassles involved.
Choices For The Protection of Assets Today For Individuals And Corporations
As more individuals are working on building their personal wealth, using a service for protection of their assets is critical to maintaining that wealth. Additionally, the use of these services can help to build that wealth while keeping it safe the same time. Protection of assets is important when you have a number of high value assets.
Using these services to protect assets will help you to make sure that you are not going to lose your home or other assets should something occur that you might be liable for. There is a wide range of options available today that can help you with this process. In addition to protecting your personal assets this service can help with the protection of corporate assets as well.
There are a number of different reasons why an organization or an individual might need this typeof service these days. For individuals, being successful means you may have a good career, a nice home and so on. This sometimes means that when something goes wrong, you will be the subject of a lawsuit that may result in the loss of your wealth, your home and anything else you might have of value.
Deciding to use this option will protect your personal assets by limiting the personal liability that any one person will have. In addition it protects all other assets that the person might own as well. Making this choice can be a good option for people who have many assets.
At the same time there are other methods found to protect one's property. Using the right investment strategies provide you options for the protection of assets in a number of ways. Some solutions that are used offer an insurance policy that guarantees your funds against loss in specific ways.
Finding the right method for protection of assets is important in a number of different ways. Learning which options will be best for your personal assets is important for many reasons. Protection of an asset may be required for an individual for example if they are going through the process of a divorce.
Protection of assets is something that nearly everyone is concerned about. Deciding on which options you will use is going to be a personal decision. You might consider the options that will be found through a consulting firm to help you with this task today.
Financial Websites For Professional Advisors
Financial Websites do not always translate to financial success when you place them online. There are many business owners that tend to assume they will gain thousands of new clients after putting a website up online. However, this is not the case when you are fighting for traffic with patterns that are already established.
Most customers are online using the Internet to visit a very limited number of websites, they tend to visit companies that they have already worked with in the past. Since web traffic is often based on established patterns, you will need to think of ways to find your footing in the market. While Financial Websites does not equate to automatic success, there is a lot that you can do to benefit from having a website online.
The best thing about having your company available around the clock is the potential to find thousands of new clients on a daily basis. In order to make the most of the possibilities, you will need to market your website with the right approach.
Getting Financial Advisor Marketing is the first thing that you should do before putting your website on the Internet. If you have already done this, you may want to consider speaking with an experienced marketing professional to help you design an approach that will work best for you. What you want is a marketing approach that focuses on helping you to create an interest in the services that you have.
Additionally, you want to focus on creating stronger relationships with the clients that you have already provided services to in the past. Keeping new eyes on your business can only get you so far. In order to make the most of this, you probably want to think about how to get these clients to spend money on your services. When you have the right marketing technique, you can get new customers from around the world that are willing to spend money on your services. Targeting new customers can also help you to increase the flow of cash into your business in a very short amount of time. When you work with the right professional, you will be able to discover how best to accomplish all of these things for the benefit of your business.
The Internet is not a magical door to large profits, but you can turn your website into a constant source of business. Having a business that is small in size can be very difficult, but you can take advantage of having the right marketing techniques on your side. When you have the right approach to your financial business, you will remove the limits that you are currently dealing with when it comes to clients.
Kleeneze Business Start Up Cost V Retail Shop Start Up Cost
And we are not just talking money here!!
If you were considering opening a shop in your local area I imagine that unless you are cash rich that you will have to go cap in hand to your bank with a business plan to apply for a start up loan that will require you to put your home up as surety.
There is a great deal of risk involved so is this a good idea?
How long will it be before you make a profit and can take an income out of the business?
How many hours are you going to have to work each week?
How are you going to keep going with all the stress this is going to put on you?
I could go on with the negatives.....
Now lets look at what is involved with starting a Kleeneze Home Shopping business. First off the start up cost is less than what someone working 40 hours on minimum wage will earn in a week, so anyone can afford the investment.
For your investment you are given 250 shops, (while your catalogues are in your customers houses each one is potentially earning you money).
Most new starters are in profit within the first four weeks, some even quicker than that.
You only need to work a minimum of 8 - 10 hours per week to develop your Kleeneze business, so you can easily do this in your spare time around your current employment.
I could go on with the positives.....
To me there is no comparison, it boils down to Risk v No Risk, Stress v Stress Free, Working 100 hours per week v 8 - 10 hours per week, etc. etc.
If you want to know more about the fantastic Kleeneze business opportunity please visit our website
The Difficulties With An Internet Business Start Up
Like most businesses, internet business start up is difficult at first. There are many things you must keep in mind for internet business start up.
Get a great idea. You want to make sure your internet business is somewhat unique, or at least a new spin on an old idea. However, no matter how good your idea is, sometimes you do not possess the necessary skills to achieve the ends. You have to take stock well of your strengths and weaknesses to properly gauge your internet marketability.
Another way to gauge your internet marketability is to determine how popular your particular skill set is. Your arm wrestling championship might be impressive, but it will not pay your internet dues unless you are marketing it to the arm wrestling crowd in the form of a school or something to that effect.
During an internet business start up you have to be conscious in the legal information. Every country and state has its own limitations on what you can and cannot do. Make sure you contact your local business bureau before trying to do something you think may be illegal. Some jobs might be legal for a 21 year old to do, but not an 18 year old.
Finding a web host is another good thing to do in the early stages, probably even before you start setting up your business model. You should check the availability of your personalized domain name.
There are particular country codes associated with each country (for example, the United States is '.us') if your country's version of your personalized name is taken, you can always find a way to sign up as another country. Things like that are not really issues anyway considering the internet is a global community.
When you choose a domain name make sure you choose something with a 'wow' factor. The name should be something that pops out at the customer and just screams for them to click and find out what is held on that site. The name of your site can be informative or quirky, but it should give a definite description of what they will find. The domain name will also garner you your first publicity.
Do not discount the advertising potential of word of mouth or viral marketing. This is the easiest way to get your message across. Your message should be something to the effect of, 'come visit my site and buy my stuff.'
The message should be unmistakable. When you design your website around the services or products you are providing, you should make them undeniably attractive to the customer. Web hosts will more often than not provide you with templates if you pay for their services.
Most of the time, even if you do not pay, they will offer you the same templates. If they do not offer the templates you can always find free templates online somewhere. With marketing in mind and a budding internet business the more free services you can acquire the better your profits will turn out.
10 Reasons to Start Your Own Business
They always say that you will never make any real money whilst working for someone else. More and more people are starting up on their own because they recognise that they can do a better job than the company for which they are working. Here are ten reasons why you should consider setting up your own start-up business and how you can benefit from it:
• High earning potential - if you are working for an employer, you are on fixed earnings. These earnings, especially in times of financial crisis, are not likely to rise and you may even see pay freezes. Working for yourself, whilst difficult to begin with until your business starts to pay, means that you have unlimited earning potential. How much you earn depends on how much you put into it.
• Getting paid your worth - do you get paid your worth in your current job? How many of us believe that our talents are going unnoticed? Working for yourself is another way to make sure that you are not only increasing your earning potential, but that you are paying yourself for your talents.
• Self and job satisfaction - how many people actually enjoy their jobs? Doing a great job for an employer very often goes unnoticed or someone with no morals comes along and claims the credit for your hard work. OK so you'll have to take the rap if your own business goes wrong but the satisfaction gained from knowing that you did a great job far outweighs the initial hard work.
• Making the economy go round - in the long term, if your business succeeds, you may well need to take on staff. As long as you are a fair employer, then you have the satisfaction of knowing that you are providing work for someone else and that you are supporting the economy.
• Professional development - many companies claim at interview that they will enhance your career by offering you superb professional development opportunities; and then they never arise. You become a number on a payroll and you disappear into a sea of other faces. Running your own business means that you are responsible for your own development and you are concentrating on areas at which you know you are good.
• Answer to no one but yourself! Speaks for yes!
• Creativity - you can be as creative as your mind will allow and you will amaze yourself at how good you can be.
• Variety of work - no two days will be the same and nor should they be! Realistically, not many people want a repetitive job so being your own boss means you do what the business demands.
• Cut out the traffic - work from home or a local office space and you need never be stuck in those endless queues of people all looking as fed up as one another.
• Make it your second career if you are not ready to give up the day job just yet. You get the best of both worlds in that case.
So the benefits of starting up a business are wide and varied and the above list is by no means exhaustive. Make it your new year's resolution and give it some thought!
Franchising Comes of Age 9 Reasons to Buy a Franchise
We live in interesting times, especially from the perspective of the business owner. There have been recent scares of recession, wildly fluctuating stock markets, concerns over the availability of credit, reports that consumers are spending less and yet more and more people are going into business for themselves.
I work with these people on a daily basis and can put their reasons for wanting to start out on their own into three basic categories; Those that are fed up with the hassles and insecurity of working for someone else and have decided to put their future into their own hands. Those that have recently seen their job disappear forever and now have a payout in the bank but aren't sure what to do next, and those that have always dreamed of owning their own business and have decided now is the time to make it happen.
So if you have decided to start your own business what makes a franchise such a good choice?
The 21st century is set to become the century of the franchise. The concept is increasingly being embraced by both the business community and the consumer alike, plays a vital role in the economy and is one of the big engines driving new job creation. Franchising has spread into all the different market sectors and is helping entrepreneurs to develop good business models far beyond their initial expectations. Franchising allows entrepreneur to enjoy greater security and chances of success than previous traditional business models.
When the subject of franchising comes up the first thing you probably think of is fast food restaurants like McDonald's, Burger King, and Wendy's, or a big chain like Starbucks (which isn't actually a franchise at all). But there is an amazing array of franchised businesses spanning the whole range of business categories. The recent Census Bureau report estimated that currently one out of every three dollars spent in North America is for goods and services provided by a franchised business. With this level of market penetration it is apparent that the era of the franchise is upon us.
Buying a franchise is a way of going into business for yourself but not by yourself and greatly improves your chances of success. Data from a variety of business sources show that within 5 years from going into business over 90% of non franchise start ups are likely to have failed, however over 90% of franchised businesses are still in business at this point. There are many reasons for the improved success of franchised businesses; the list below breaks these down into 9 categories:
1. Proven Business System
2. Corporate Image and Brand
3. Turn Key Business
4. Ongoing Support
7. Exclusive Territory
8. Finance is Easier to Obtain
9. Greater Probability of Success
In the following series of articles I am going to examine each of these categories in more depth and explain how they provide the franchisee with a good start and provide an advantage over going it alone.
Marketing on the Internet 3 Barriers Blocking Your Success
Marketing on the internet is a great way to earn a good income however it can also be confusing or overwhelming for many aspiring online entrepreneurs. The internet offers access to so much information that the typical start up entrepreneur in particular could easily be swamped by it. In an effort to do their 'due diligence' to get a successful start with their new business venture many can easily become paralyze by the information overload. This introduces confusion and ultimately disrupts their focus which is so necessary in order to become successful online.
Let's have a look at 3 common occurrences that result from the 'information overload' phenomenon many people experience and how it inhibits their success.
Too much 'investigating' can cause you to change course, several times, to the point that you are now 'embracing' more than you can handle. Your 'original' intentions or goals are now buried under a steep pile of freshly uncovered information. These new 'discoveries' have given birth to a whole new set of ideas and a brand new direction for you. This of course starts off a whole new process of research that will, once again, uncover something even 'better' and the cycle is now on!
Not Taking Action
Take action, what are you kidding? There is way too much research to be done here! As you 'unknowingly' become more deeply immersed in the 'research' you are really just drifting further away from actually putting any plan into motion.
The reality is that you should be taking 'only' that information that is related to your original interest and use it to move yourself forward. Internet marketing is NOT a rocket science and you can easily start a business very quickly. It only becomes more involved and complicated if you allow it to. Your learning is an ongoing process and not a one time event that needs to be completed before you even start your business.
Not Keeping Focus
At this point your eyes appear to be 'glazed' over and you are wondering if anything will work even though you have not tried ANYTHING yet! This is the common affect of information overload, too much can confuse and distract you.
Focus only on what it is that will help you get started in the field you have an interest in. Put your new knowledge into motion and be prepared to make adjustments as you go along. Do not expect to be able to figure it all out before you even start since online marketing is a very dynamic industry where change can be a daily occurrence.
Many online entrepreneurs will attest to the fact that marketing on the internet can be very rewarding but also presents potential 'pitfalls' to the newcomer. Any start up entrepreneur looking to get a successful start with their business venture is subject to overdose on too much information due to its abundance on the internet. This can lead to 'paralysis analysis' ultimately resulting in little or no meaningful actions taken. In the end the 'quest' to become successful online evaporates. In the 'dust' is left the now demoralized entrepreneur to walk away leaving behind their dreams and wasted time and efforts. By identifying these 'pitfalls' in advance it now becomes easier to avoid them and regain the ability to focus on ONLY that which is important in order to take the necessary actions early on.