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Informe Ingles Finanzas
Informe Ingles Finanzas
FACULTY OF BUSINESS
ACCOUNTING SCHOOL
COURSE:
FINANCE
AUTHOR:
Cosme Pariasca, Helen Yamilet
(https://orcid.org/0000-0002-5420-2770)
TEACHER:
Ate - Perú
(2023)
INDICE
I. INTRODUCTION....................................................................................................................3
II. DEVELOPMENT.....................................................................................................................3
What is the VAN?.....................................................................................................................3
How is VAN calculated?...........................................................................................................4
Advantages:.............................................................................................................................5
Disadvantages:.........................................................................................................................5
III. REFERENCIAS BIBLIOGRÁFICAS.........................................................................................6
I. INTRODUCTION
Estimating the cash flow for each project, including the initial investment,
annual operating cash flows, and cash flows associated with project
completion, is the first step in evaluating a capital project.
The process of identifying, valuing and quantifying the costs and benefits
produced by a project during a specific period of time is called project
evaluation. Being its objective, to determine if the execution of the project is
convenient for whoever carries it out.
That is why in the following report we will present the definition of Net Present
Value, what is it?, how is it calculated? its advantages and disadvantages, this
entire report will be created in order to learn the usage of the VAN.
II. DEVELOPMENT
In this case, when comparing the present value of the projected future cash
flows with the initial investment, the net present value (VAN) is a financial
metric used to evaluate projects. As a result, the present value of the initial
investment is subtracted from the present value of the future cash flow in a
time value of money calculation.
The company must calculate the present value of future cash flows each year
using a discount rate to determine the NPV accurately. To do this, all cash
inflows and outflows up to today are discounted, obtaining a net worth that can
be negative, positive, or zero. It is crucial to emphasize at this point that NPV
does not take into account the risk or uncertainty of cash flows.
The formula that allows us to calculate the Net Present Value is:
Once the parameters have been defined, what we must do is update them
and take them to the flows, making use of financial mathematics.
After that the compound interest and the result will be a formula.
Formula:
Example:
Rpta:
This means that in this production it would be profitable to invest, since it is
greater than 0.
Advantages:
Disadvantages:
One of the main drawbacks of the NPV is that it ignores the time value of
money, or the fact that money today is worth more than the same amount in the
future due to inflation and other factors.
Jesús S. (2022, August 16). Valor Actual Neto: ¿Qué es y cómo se calcula de manera
correcta? Economia3. https://economia3.com/valor-actual-neto/
Economía Planificada. (2023, April 6). ¿Qué es el Valor Actual Neto (VAN)?
Características y ventajas. - Economía planificada. Economía Planificada.
https://economiaplanificada.com/valor-actual-neto-van/
Manuel López Millán. (2020, October 29). ¿Qué es el VAN y cómo se calcula? MBA •
IMF Smart Education. https://blogs.imf-formacion.com/blog/mba/que-es-van-
calcula/