Podcasts about Net present value

Net Present Value and Internal Rate of Return Business Finance, FIL 240-001, Spring 2025, Lecture 22 Type: mp3 audio file ©2025

Net Present Value and Internal Rate of Return Business Finance, FIL 240-002, Spring 2025, Lecture 22 Type: mp3 audio file ©2025

While at lunch with a friend today, the question came up of whether he should invest his time into content (videos and courses) or consulting. Having run a consultancy (and exiting the consulting game), I quipped that consulting often has a negative net present value. What do I mean? Listen on... Note - I'm trying out a new format where I'll record and post episodes whenever I feel like it (novel idea). Not sure about the cadence yet, so stay tuned. This might mean that non-guest podcasts simply have a topic associated with the title.

John Miniotis, President and CEO, and Jeremy Weyland, Senior VP of Projects and Development of AbraSilver Resource Corp (TSX.V:ABRA – OTCQX:ABBRF), both join me to review the results of their updated Pre-Feasibility Study (“PFS”) for the Diablillos silver-gold project, located in Salta Province, Argentina.   PFS Study Highlights:   All dollar ($) figures are presented in US dollars unless otherwise stated. Base case metal prices used in the PFS are $2,050 per gold (“Au”) ounce (“oz”) and $25.50 per silver (“Ag”) oz.   Attractive project economics: 747 million after-tax Net Present Value discounted at 5% per annum (“NPV”); 27.6% Internal Rate of Return (“IRR”) and 2.0-year payback period.  At current spot prices1 an after-tax NPV5% of $1,291 million with an IRR of 39.3% and payback of 1.5 years.  Substantial silver and gold production – 13.4 Moz silver-equivalent “AgEq”) average annual production over a 14-year life-of-mine (“LOM”), comprised of 7.6 Moz Ag and 72 koz Au, with average annual production of 16.4 Moz AgEq over the first five years of full mine production, comprised of 11.7 Moz Ag and 59 koz Au.  Low All-in Sustaining Cash Costs (“AISC”)– Average AISC of $12.67/oz AgEq over LOM, and $11.23/oz AgEq over the first five years of full mine production.  Initial capital expenditures - Initial pre-production capital expenditure of $544 million (including contingency)with a further $77 million in sustaining capital over the LOM.   Significant potential for additional economic improvements: Replacement of on-site self-generation from a combined solar-diesel power plant with a connection to the national grid under a long-term power purchase agreement  from a third party. Capturing this opportunity would provide a meaningful reduction to initial capital, lower operating costs and, potentially, improve the carbon footprint of the Project.  A revised mine plan based on a new Mineral Resource and Reserve estimate that incorporates the additional Phase IV exploration drilling results at JAC and the northeast zone of Oculto as well as higher metal price assumptions. A new mine plan may present the opportunity to reduce strip ratio, and improve operating cashflow.  Expansion of available water resources to the Project to remove constraints on plant throughput resulting in increased metal production.  Treatment of marginal material currently classified as waste through secondary processing, such as heap leaching, resulting in increased metal production.   Improvements to the design of the Tailings Storage Facility (“TSF”) to reduce capital and operating cost, and also decrease the environmental footprint.     Jeremy unpacks the benefits to the economics and from the Incentive Regime for Large Investments (“RIGI”) legislation passed by the Argentinean congress in July, 2024.  The key incentives include a reduction of the federal corporate income tax rate from 35% to 25%; the elimination of export duties levied on gold and silver sales respectively; and accelerated tax depreciation of plant and equipment.  He walks us through the timeline for qualifying projects with expenditures above $200M applying for RIGI before the law expires in July, 2026.  AbraSilver will apply after they receive their EIA, and then the Company must spend 40% of the investment amount within two years of approval (by no later than July 2028).  Diablillos meets all of the required qualifications for RIGI. The PFS considers an execution plan to obtain RIGI approval by no later than Q2 2026, giving the Project until Q2 2028 to spend 40% of the investment, or approximately $200M.   John wraps us up with all the exploration catalysts to come from the ongoing 20,000 meter Phase 4 diamond drill campaign on their wholly-owned Diablillos property, which has continued to extend mineralization at both the JAC Zone and Occulto NE, as well as a new discovery made outside of the known resources at the Sombra Target, the drilling at Cerro Bayo, and the copper-gold porphyry targets at Cerro Blanco and Cerro Viejo.    If you have any follow up questions for John or Jeremy regarding at AbraSilver, then please email me at Shad@kereport.com.   In full disclosure, Shad is a shareholder of AbraSilver at the time of this recording.   Click here to visit the AbraSilver website and read over the most recent news releases.

Net Present Value and Internal Rate of Return Business Finance, FIL 240-001, Autumn 2024, Lecture 22 Type: mp3 audio file ©2024

Net Present Value and Internal Rate of Return Business Finance, FIL 240-002, Autumn 2024, Lecture 22 Type: mp3 audio file ©2024

More jobs data points to a healthy economy The Job Openings and Labor Turnover Survey (JOLTs) showed a surprise increase in the month of August. Openings totaled 8.04 million, which topped the estimate of 7.64 million and July's reading of 7.71 million. While this is still well off the highs from just a couple of years ago, there are still 1.1 available jobs for every person looking for one. On the inflation front, I believe it was positive to see the quits rate decline to 1.9%, its lowest level since June 2020. This indicates that the labor market has softened as employees are seeing less opportunity to quit their job in favor of another one. This should help put less pressure on wage inflation. The Fed will have to continue to walk the fine line of keeping the economy moving in a positive direction without stoking a rise in inflation. It's a tough task, but the labor market has continued to hold up much stronger than many believed was possible.    Employment report surprises to the upside      I was surprised to see the continued strength in the labor market as the growth of headline nonfarm payrolls of 254k in the month of September easily topped the estimate of 150k. Strength came from leisure and hospitality, which saw payrolls grow 78k thanks to a nice spike of 69k jobs from food services and drinking places. Other positive sectors included health care and social assistance (+71.7k), government (+31k), and construction (+25k). Only two sectors saw declines in the month with manufacturing losing 7k jobs and transportation and warehousing down 8.6k jobs. Both July and August saw upward revisions to their reports for a combined total increase of 72k. Wage inflation was also stronger in the month as average hourly earnings grew 4% compared to last year. This is up from last month's reading of 3.8%, but still remains substantially below last year's high of 5.92%. Precovid, wage growth was in the low to mid 3% range. Overall, this report didn't have many problems. The only concern is, did the Fed move to soon and could inflation still be the larger concern rather than a weakening labor market? This report did increase expectations for a November rate cut to be 0.25% rather than 0.5%. I would have been shocked if the Fed would have opted for another 0.5% cut even if the jobs report wasn't this strong.    ILA Dockworkers strike Good news for those that were concerned about the International Longshoremen's Association's (ILA) strike as the union and the United States Maritime Alliance reached a tentative agreement on wages and agreed to extend the Master Contract until January 15th, 2025. Wages will increase 61.5% over six years under the tentative deal, but the major point of conflict that still needs to be negotiated is port automation. With the increase in wages, it will be interesting to see how much the Maritime Alliance is willing to budge on automation as they will likely need to look for ways to improve efficiency to offset the higher wages. Efficiency is already a concern for US ports as a study from just a couple of years ago ranked the LA and Long Beach ports as the least efficient trade hubs for handling containers in the world. Other US ports including Savannah, Georgia, New York, and New Jersey also ranked in the bottom half of the list. Of the 370-member Container Port Performance Index, we did not have a single port in the top 10. While this resolution is positive, the problems could be delayed until early next year if the two sides still cannot come to an agreement. During my research on this strike, I learned some surprising things about the union leader, Harold Daggett. You may be shocked to learn that his combined income as president of two unions is around $900,000 per year with $728,000 coming from the ILA. He currently drives a Bentley, which is a high-end luxury vehicle with a price of $210,000 for a new one. He also recently sold his 76-foot yacht and based on the US boat group market index, the average price of a yacht in that range is $1.5 million and costs around 10 to 15% of the value to operate yearly. I was also surprised to see this is a “family business” as his son is employed by the same two unions as his dad and was paid a total of more than $700,000 last year. As for the workers, on the East Coast the union workers have an average pay around $81,000 per year. However, the waterfront commission of New York estimates 1/3 of the longshoreman made $200,000 or more last year with overtime.    Investors are still adding money to money market funds Even with the recent rate cut by the Federal Reserve, investors still put nearly $130 billion into money market funds. This brought total assets in money markets to $6.8 trillion. I don't believe this money will stay there very long as probably within 3 to 6 months investors will start seeing the interest rates decline and once, they fall below 4%, we could see a large drop in the assets held in money market funds. The big question for investors is where to go. If you need liquidity, you're probably best off staying in the money market funds, but if you won't need the money for the next 3 to 5 years, you should be looking at building a strong investment portfolio using patience and a lot of research to make sure you have the right investments.    A Lesser-Known Spousal Social Security Strategy After 2015 many of the spousal strategies such as the file and suspend or restricted application options are no longer possible. This is because a “deemed filing” rule applies which means when someone files for Social Security benefits, they are deemed to be filing for all benefits they are eligible for such as spousal and their own benefits.  When they apply, they will receive whichever benefit is larger, but not both.  However, there is still a way to switch between benefits. In order to receive a spousal benefit, the spouse you are collecting from must also be collecting. If they are not, you would only be eligible for your own benefit until they begin collecting.  Consider a wife who is no longer working and whose full retirement age 67 amount is $1,000 and who has a working husband with a full retirement age amount of $3,500.  Because of the husband's larger benefit, the wife is also eligible for a spousal benefit of half that amount, $1,750, if she collects it at her full retirement age.  In this situation the wife may collect from her own record as early as age 62.  Since she would be collecting 5 years early, her own benefit would be reduced from $1,000 to $700.  Later on though, when her husband retires and starts his own social security, she could begin her spousal benefit at age 67 and boost her benefit by $750 up from $700 to $1,450. This $750 boost is because her spousal benefit of $1,750 is $750 larger than her own full retirement age amount of $1,000, even though she began collecting at 62.  If she had waited to apply for anything until age 67, she would receive the full spousal benefit of $1,750, but she would have waited 5 years of collecting nothing just for an extra $300.  From a Net Present Value perspective, it is better for the wife to collect her own benefit at 62 and later receive the spousal boost rather than wait completely until 67.  Also, there are many spouses who collect early without knowing they are also eligible for a larger spousal benefit when their spouse retires.  If they do not alert the Social Security Administration, they may not ever receive their increased benefit.   Companies Discussed: Costco Wholesale Corporation (COST), Humana Inc. (HUM) & LyondellBasell Industries (LYB)

Interview with Dan Wilton, CEO of First Mining Gold Corp.Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsxvff-gold-developer-eyes-200oz-in-the-ground-upside-5825Recording date: 17th September 2024First Mining Gold (TSX:FF) is positioning itself as a key player in the gold mining sector, with a focus on developing two of Canada's largest undeveloped gold projects. The company's strategy centers on advancing these assets through critical stages of development, potentially creating significant value for investors in a market facing a scarcity of large-scale gold projects.First Mining Gold boasts two key assets that form the cornerstone of its portfolio. The Springpole Gold Project in Ontario stands out as one of Canada's largest undeveloped gold projects. The company is on the verge of submitting its final environmental assessment for Spring Pole, with the goal of securing environmental approval by the end of 2025. This project offers significant leverage to gold prices, with every $100 increase in the gold price potentially adding $250 million US to its after-tax Net Present Value.The company's second major asset is the Duparquet Gold Project in Quebec, situated in the renowned Abitibi gold belt. Duparquet hosts substantial resources, with 3.5 million ounces in the Indicated category and an additional 2.5 million ounces Inferred. Ongoing exploration aims to test the high-grade potential at depth, and the company is targeting an updated Preliminary Economic Assessment (PEA) for Duparquet after the ongoing 2024 drilling program.First Mining Gold's strategic position aligns well with current industry trends. The scarcity of large, permitted gold projects in tier-one jurisdictions, coupled with major producers' growing need to replenish their project pipelines, puts the company in a favorable position. Additionally, stabilizing input costs and resilient gold prices could potentially improve project economics. As CEO Dan Wilton notes, "We've done the hard yards... we've done the work and so now I think it does put the projects in a pretty interesting light."The company has demonstrated financial prudence in its approach to project advancement. Over the past four years, First Mining Gold has generated over $60 million in cash from its asset portfolio without resorting to shareholder dilution. This strategy has enabled the company to progress its key projects through challenging market conditions. However, it's important to note that additional financing will likely be required as the projects move into future development stages.For investors considering First Mining Gold, there are several potential upsides to consider. These include significant leverage to gold prices, strategic optionality in terms of project development paths, the scarcity value of large-scale projects in stable jurisdictions, and exploration upside, particularly at Duparquet. As always, investors should still be aware of the risks inherent in mining development. These include permitting uncertainties, substantial capital requirements for development, potential gold price volatility, and the execution risks associated with mine development.In the near term, investors should watch for several key catalysts that could impact the company's value. These include the imminent submission of the final environmental assessment for Spring Pole, the upcoming updated PEA for Duparquet expected in Q1 2025, and ongoing exploration results, particularly from the deeper drilling program at Duparquet. These events could provide valuable insights into the projects' potential and the company's progress in advancing its assets.View First Mining Gold's company profile: https://www.cruxinvestor.com/companies/first-mining-goldSign up for Crux Investor: https://cruxinvestor.com

Interview with Andrew Williams, President and CEO of New Pacific MetalsOur previous interview: https://www.cruxinvestor.com/posts/new-pacific-metals-nuag-advancing-2-large-bolivian-ag-au-projects-3092Recording date: 28th June 2024New Pacific Metals (TSX:NUAG) is emerging as a compelling player in the silver mining sector, with two significant discoveries in Bolivia that are attracting attention from investors and industry experts. The company's flagship Silver Sand project has recently reached a crucial milestone with the publication of its pre-feasibility study (PFS), while its second project, Carangas, is advancing towards a preliminary economic assessment (PEA).The Silver Sand project's PFS results are particularly noteworthy, showcasing robust economics that position it as one of the world's premier undeveloped precious metals projects. With an after-tax Net Present Value of $740 million at $24 silver, a 37% Internal Rate of Return (IRR), and a payback period under two years, Silver Sand demonstrates significant potential for value creation. The project's NPV to initial capital expenditure ratio of over 2 further underscores its attractiveness.New Pacific's second discovery, the Carangas project, adds another dimension to the company's growth potential. With a PEA expected in the coming months, Carangas could potentially unveil another significant silver asset, further enhancing the company's resource base.One of New Pacific's key strengths lies in its strategic backing. The company boasts strong support from major players in the silver mining industry, with Silver Corp holding a 27% stake and Pan American Silver owning just under 12%. This backing not only provides financial support but also lends credibility to New Pacific's projects and approach.Operating in Bolivia presents both opportunities and challenges. While the country has a rich mining history, it hasn't seen a new large-scale open-pit mine permitted in some time. New Pacific has taken a strategic approach by employing a 100% Bolivian team for its in-country operations, complemented by experienced expats and Vancouver-based management. This structure effectively balances local knowledge with international mining expertise.The silver market outlook provides an attractive backdrop for New Pacific's projects. Silver demand is driven by both investment and growing industrial applications, particularly in sectors such as photovoltaics and electric vehicles. The supply side is constrained, as 75% of silver is produced as a byproduct of other metals, potentially setting the stage for significant price movements if demand outpaces supply growth.From a financial perspective, New Pacific is well-positioned with approximately US$15 million expected in cash reserves by the end of the year. This runway provides the company with flexibility to continue advancing its projects without immediate financing pressure.For investors, New Pacific Metals offers exposure to two high-quality silver assets in a jurisdiction that, while challenging, offers potential for lower costs and less competition. The company's strong backing, experienced management, and advancing projects make it an attractive option for those seeking exposure to the silver market.However, investors should be mindful of the risks associated with mine development in Bolivia and the inherent volatility of the silver market. As with any mining investment, careful due diligence is essential. Potential investors should closely monitor progress on permitting, stakeholder engagement, and project advancement, as well as broader trends in the silver market.View New Pacific Metals' company profile: https://www.cruxinvestor.com/companies/newpacificmetalsSign up for Crux Investor: https://cruxinvestor.com

What is the mindset that's reshaping how companies and investors forge paths to success from beyond the balance sheets? How are the staunch principles of Net Present Value giving way to strategies that are as nimble and adventurous as the startups they finance?Ilya Strebulaev is a Professor of Private Equity at the Stanford Graduate School of Business, Director of their Venture Capital Initiative, and the co-author of the new book The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth with Alex Deng.Ilya and Greg discuss the layers of a dynamic business landscape, revealing how traditional corporate strategies are being outpaced by those who dare to think like venture capitalists. Ilya describes how top venture capitalists operate and why embracing their methodologies is critical in a world where change is the only constant. Ilya shares tales of contrarian investment decisions, the growing presence of corporate venture capital, and the converging paths of institutional and corporate VCs.*unSILOed Podcast is produced by University FM.*Episode Quotes:The venture mindset42:02: The venture mindset doesn't mean that you have a perfectly crystal ball recognizing these great founders and great ideas. The venture mindset means that you, in an organization, build structure, build decision-making process, what we also call it, build racetracks, so that again and again and again, you will be able not just to spot but also to realize those unusual contrarian investment opportunities. And I think that most successful VC firms that I studied—well, actually all successful VC firms that I studied that have been successful for quite a bit of time, all follow these principles.How having a prepared mind helps you to invest right away16:27: In fact, the smartest decisions are never fast. You just prepare yourself for this decision. Institutional VCs vs. Corporate VCs25:50: Institutional VCs have, first, much larger LinkedIn profiles. Larger meaning, not just that they have more information there, but have more connections. Their network is much, much larger. 26:10: Corporate VCs' LinkedIn are much, much smaller. But there's something else: if you look at corporate VCs' LinkedIn profiles, very likely, in fact, their connections will be within their four walls. Or maybe if you come from another organization, there will be these two four walls. So that there will be fewer organizations where their connections are coming from. And you could see it if you map them. But for institutional VCs, it's not just that you have three times more connections. But they're very different. 26:53: Because I think the diversity in constructive networking, as I call it, also brings a lot of new opportunities. And again, you need this, and this is a part of the venture mindset.Is dissenting from the consensus important in the venture mindset?35:20:There is something else, which I think is a huge part of the venture mindset, that if everybody invests and there's a craze about it, obviously, it means there are also going to be crazy valuations. That also means that you're likely too late for the party. It's likely that even if everybody is right, your return is going to be right. And as a result of that, I think the best way those who follow the venture mindset think about this is that we have to be right, but there should be a lot of disagreement. If there is consensus that you know, crypto is going to be the next craze. Well, right now, generative AI is going to be the next craze, okay? If everybody is right, then, in fact, you're going to be right, but your returns are going to be relatively small. You would like to be right when you are what we call in the book Mr. Contrarian—somebody who goes against the crowd.Show Links:Recommended Resources:Net Present ValueOpen InnovationBlue Ocean StrategyJensen HuangLouis PasteurDrew HoustonGuest Profile:Faculty Profile at Stanford GSBProfile on LinkedInWikipedia PageIlyaStrebulaev.comHis Work:The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary GrowthGoogle Scholar PageCornerstone Research Page

In this extensive session with Rita McGrath, Aiden explores the timeless insights of McGrath's book on embodying an entrepreneurial mindset in businesses. McGrath emphasises the importance of continuous innovation, exploiting new opportunities, and building new competencies to stay competitive. The conversation covers key concepts like the significance of key ratios, creating new competence, understanding consumption chains, and the necessity of political savvy within corporate innovation. McGrath also introduces practical tools and frameworks for evaluating opportunities, managing resources, and adapting execution strategies. The dialogue includes examples like Amazon's innovation in delivery systems and Procter & Gamble's ventures, illustrating the application of these concepts in real-world scenarios. McGrath provides advice on overcoming common challenges in innovation, such as attracting the first few customers and navigating corporate politics effectively.   00:00 Welcome & Introduction to Timeless Business Frameworks 00:36 Exploring the Entrepreneurial Mindset and Innovation 02:03 Key Ratios: The Secret to Competitive Advantage 06:15 Stratification Mapping: Unveiling Business Asymmetries 08:39 The Art of Championing Innovation Within Corporations 15:16 Navigating Corporate Politics for Innovation Success 23:13 Asset Parsimony: Thriving with Limited Resources 25:40 Real Options Reasoning vs. Net Present Value 31:24 Exploring the Ecosystem of Options 31:56 The Future of Remote Work Technologies 32:31 Investing in Positioning Options 33:51 Scouting and Stepping Stones: Navigating Uncertainty 35:09 Leveraging RFID Technology: A Case Study 38:05 Resource Allocation and Organisational Structures 42:17 Competitive Insulation and the Direct-to-Consumer Boom 46:22 Adaptive Execution and Discovery Driven Growth 54:22 Understanding Customer Consumption Chains 58:20 Concluding Remarks and Additional Resources   Find Rita:

John Miniotis, President and CEO of AbraSilver Resource Corp (TSX.V:ABRA – OTCQX:ABBRF), join us to outline the key takeaways and primary metrics from its Preliminary Feasibility Study (“PFS”) for its wholly-owned Diablillos project in Salta Province, Argentina, just released on March 25th, 2024.   >> PFS Study Highlights:   Attractive project economics – $494 million after-tax Net Present Value discounted at 5% per annum at base-case metal prices, with an after-tax Internal Rate of Return (“IRR”) of 25.6% and payback of 2.4 years. At current spot prices an after-tax NPV5% of $661 million with an IRR of 30.3% and payback of 2.1 years Base case metal prices used in this analysis are $1,850 per gold (“Au”) ounce (“oz”) and $23.50 per silver (“Ag”) oz. Substantial silver and gold production – 13.3 Moz silver-equivalent (“AgEq”) average annual production over a 13-year life-of-mine, comprised of 7.7 Moz Ag and 71 koz Au, or, with average annual production of 17.9 Moz AgEq over the first five years of full mine production, comprised of 14.5 Moz Ag and 44 koz Au  Low All-in Sustaining Cash Costs (“AISC”)– Average AISC of $12.40/oz AgEq over LOM   Low capital cost – Initial pre-production capital expenditure of $373 million and sustaining capital of $65 million  Open pit mine with high grades – Conventional open pit mining and processing plant focused exclusively on oxide mineralization with average grades of 91 g/t Ag and 0.81 g/t Au (155 AgEq) over the LOM  Maiden Proven Probable (“P”) Mineral Reserves Based on the PFS, Diablillos is estimated to hold PP Minerals Reserves containing 210 Moz of AgEq metal (42.3 Mt at 91 g/t Ag 0.81 g/t Au)   Potential for additional economic improvements – Several opportunities have been identified that may significantly enhance the economic returns as detailed later in this release:  A Phase IV drill campaign is planned to further expand the Mineral Resource and Reserve estimates within the existing deposits and to define new adjacent mineralized zones through step-out drilling.    We also get into the optionality between silver and gold for future development options, the potential to find new satellite pits by further exploring the JAC North, Alpaca, and Fantasma targets, and discuss the benefit of the project being in the mining friendly province of Salta in Argentina.   If you have any follow up questions for John regarding at AbraSilver, then please email us at Fleck@kereport.com  or Shad@kereport.com.   In full disclosure, Shad is a shareholder of AbraSilver at the time of this recording   Click here to visit the AbraSilver website and read over the most recent news releases.

Newly appointed Aura Energy Ltd (ASX:AEE) CEO Andrew Grove joins Jonathan Jackson in the Proactive studio to discuss the company's uranium ambitions and its work at the Tiris Uranium Project in Mauritania, which is poised to become a leading global near-term uranium operation following the delivery of a positive Front End Engineering Design (FEED) study. Grove gives his insight into the FEED study and what the findings indicate about the project's potential. He also outlines the expansion plans for Tiris, highlighting the strategic direction and growth objectives. Further to this, Grove speaks about the Swedish Government's potential reversal of its uranium mining ban and what this would mean for the company's Haagan Project in Sweden, including a possible increase in Net Present Value and strategic positioning. #ProactiveInvestors #AuraEnergy #ASX #Uranium #Energy #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Emmerson PLC chief executive Graham Clarke discusses the company's groundbreaking Khemisset Multi-mineral Process (KMP) in an interview with Proactive's Stephen Gunnion. Clarke said the KMP will revolutionize its Khemisset Potash Project with environmental and economic benefits, aligning with Morocco's sustainability goals. The process transforms waste brines into valuable products like slow-release fertilizers, reducing runoff risks and lessening overall fertilizer usage. Significantly, it cuts water consumption by 50%, a crucial advancement in drought-stricken Morocco. Clarke highlighted the financial impact of KMP, boosting the project's Net Present Value from $1 billion to $2.2 billion and the Internal Rate of Return from 26% to 40%, despite inflation and rising equipment costs. This surge is attributed to monetizing waste products into two new offerings: Struvite and Vivianite, with conservative market pricing yet potential for higher returns due to their unique qualities. The interview also touched on the new fertilizer products, Struvite and Vivianite, alongside byproducts like ammonium chloride and industrial-grade salt, exploring recycling and market expansion possibilities. Clarke concluded with updates on further optimizations, the integration of KMP into feasibility studies, and the pursuit of offtake agreements. ‌ #EmmersonPLC #GrahamClarke #ProactiveLondon #KMPprocess #SustainableMining #PotashProject #EnvironmentalImpact #InnovationInMining #WaterConservation #FertilizerProduction #Struvite #Vivianite #MiningEconomics #NetPresentValue #InternalRateOfReturn #SustainableFertilizers #MoroccoMining #EnvironmentalApprovals #MiningOptimization #MiningIndustryNews #CEOInterview #MiningTechnology #ResourceManagement #CorporateSustainability #GreenMining #MiningInvestments #ResourceEconomics #WaterManagementInMining #ProactiveInvestors #InsertCompanyName #InsertStockMarket #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Welcome back to Money Grows On Trees: The Podcast. In this episode titled "Bitcoin ETF Hype," host Lloyd Ross delves into the buzz surrounding Bitcoin's recent inclusion in an ETF and shares his detailed analysis of the phenomenon. With a no-holds-barred approach, Lloyd breaks down what a Bitcoin ETF is and provides a critique of the investment, emphasizing his stance against owning Bitcoin due to its speculative nature and lack of tangible value. He challenges the hype surrounding the ETF and emphasizes the importance of investing in productive assets that provide tangible value, offering listeners a refreshing take on financial education. Tune in to this episode for a thought-provoking insight into the Bitcoin ETF frenzy and a no-nonsense guide to smart investing.

Bryan Caplan is a Professor of Economics at George Mason University and a New York Times Bestselling author. He's the author of 8 books, including The Myth of the Rational Voter, The Case Against Education, and Open Borders: The Science and Ethics of Immigration. His next book, Build, Baby, Build: The Science and Ethics of Housing, will be published by the Cato Institute in 2024. He's the editor and chief writer for Bet On It, the blog hosted by the Salem Center for Policy at the University of Texas. He's published in the New York Times, Washington Post, Wall Street Journal, TIME, Newsweek, Atlantic, American Economic Review, Economic Journal, Journal of Law and Economics, and Intelligence, blogged for EconLog from 2005-2022, and appeared on ABC, BBC, Fox News, MSNBC, and C-SPAN. 0:00 - Intro 2:23 - The Most Irrational Beliefs in Society 3:43 - Why Do People Vote? 5:57 - The Most Net Positive Delusions in Society 7:30 - Bottlenecks in Democracy 9:13 - Idea Traps 13:13 - The Ideological Turing Test 15:16 - Caricatures of Political Parties 17:49 - The Case for Open Borders 21:48 - Tribalism and Social Cohesion 25:33 - Privatization and The Confluence of Cultures 26:56 - What's the Point of Countries? 28:26 - What Values Are (Mostly) Non-negotiable? 30:27 - The Net Present Value of Immigration 33:43 - The Competition of Cultures 38:15 - Is Globalism Inevitable? 39:30 - Resources and Culture 42:49 - How to Fix Immigration 45:07 - The Case Against Education 48:48 - What is a Degree Actually Worth? 52:05 - Why is Bryan a Professor? 53:13 - The Value of Conformity in Society 55:25 - Is Learning How to Learn Real? 57:51 - Is There Value in the Liberal Arts? 29:27 - Bryan's Approach to Learning 1:01:49 - Who Does Education Well? 1:02:49 - The Biggest Problems in Academia 1:05:47 - Should we Abolish Tenure? 1:09:32 - Why Parenting is Overrated 1:11:51 - What Kind of Parenting Has an Effect? 1:14:23 - Positive Effects of Having Kids 1:16:03 - The Science and Ethics of Housing Regulation 1:18:50 - Intangible Costs of Deregulation 1:21:39 - How does Ideology Propagate Itself? 1:24:09 - If Everything's Mimetic are Free Markets Overrated? 1:25:54 - How to Get Ideas Into the Mainstream 1:28:19 - Are Politicians Evil? 1:31:35 - The Future of Labor Markets Under Remote Work 1:34:21 - What Should More People Be Thinking About?

In this bonus clip, Josh Jalinski delves into the financial intricacies of Shohei Ohtani's contract with the Dodgers. He clarifies that the net present value of Ohtani's contract is actually $337,000,000, contrary to the widely reported $700 million. Josh explains that this lower valuation was strategically calculated to protect the Dodgers from salary cap taxes. He also discusses the significant impact of taxes on Ohtani's earnings, suggesting that a lump sum payment upfront would have been more financially beneficial for Ohtani. Can't get enough of the Financial Quarterback? Click 'Subscribe' to ensure you never miss a play. New episodes touchdown right here! And if you're loving the playbook, drop us a 5-star rating and leave a review. Your feedback drives the game!

In this episode, MJ the tutor delves into the essential tools - Net Present Value, Payback Period and Internal Rate of Return - that empower you to make informed decisions in your learning journey. Learn how to measure the worth of educational pursuits, calculate returns on your investment and strategise for a smarter, more fulfilling path to knowledge.    Accounting Makes Cents is a biweekly podcast dedicated to CIMA accounting students and those still thinking about it. Episodes will range from providing study tips and resources to brief discussions of CIMA syllabus topics.   If you like the show, please hit subscribe to add it to your listening queue and to ensure you do not miss an episode.   Thanks for tuning in and see you on an Accounting Makes Cents episode soon!   The show transcripts are available on www.mjthetutor.com   Let's connect: Spotify for Podcasters: https://podcasters.spotify.com/pod/show/mjthetutor Facebook: facebook.com/mjthetutor Instagram: @mjthetutor X: @mjthetutor   Credits: “Ding Ding Small Bell” (https://freesound.org/s/173932/) by JohnsonBrandEditing (https://www.youtube.com/channel/UC1RImxnsbfngagfXd_GWCDQ) licensed under CC0 Licence. --- Send in a voice message: https://podcasters.spotify.com/pod/show/mjthetutor/message

Cattle Market Export and Tools Don't Move Firewood Faces in Agriculture: Luke Bellar   00:01:05 – Cattle Market Export and Tools: A cattle market update with Iowa State University livestock economist Lee Schulz begins today's show. He discusses export data and a tool that can help producers understand how much they can afford for replacement heifers. Net Present Value of Beef Replacement Heifers Raising Versus Buying Heifers for Beef Cow Replacement   00:12:05 – Don't Move Firewood: Continuing the show is Ryan Rastok, forest health coordinator with the Kansas Forest Service, on why it is important to not move firewood. He explains the issues it can cause for trees and homeowners. KansasForests.org DontMoveFirewood.org   00:23:05 – Faces in Agriculture: Luke Bellar: Another segment of Faces in Agriculture completes today's show. Labette County farmer, Luke Bellar, talks about his operation and his off-farm involvement.     Send comments, questions or requests for copies of past programs to ksrenews@ksu.edu.   Agriculture Today is a daily program featuring Kansas State University agricultural specialists and other experts examining ag issues facing Kansas and the nation. It is hosted by Shelby Varner and distributed to radio stations throughout Kansas and as a daily podcast.   K‑State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well‑being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K‑State campus in Manhattan

In finance, everything comes down to promises. When you invest money, questions arise: how profitable will it be down the line, and is it worth investing today? Determining the exact amount of those returns and whether investing is worthwhile can be challenging.This lecture will introduce the concept of Net Present Value. It will discuss how NPV helps managers satisfy shareholders without direct interaction, and how it can evaluate uncertain future payoffs in order to meet investor expectations.A lecture by Raghavendra Rau recorded on 2 October 2023 at Barnard's Inn Hall, LondonThe transcript and downloadable versions of the lecture are available from the Gresham College website: https://www.gresham.ac.uk/watch-now/net-present-valueGresham College has offered free public lectures for over 400 years, thanks to the generosity of our supporters. There are currently over 2,500 lectures free to access. We believe that everyone should have the opportunity to learn from some of the greatest minds. To support Gresham's mission, please consider making a donation: https://gresham.ac.uk/support/Website:  https://gresham.ac.ukTwitter:  https://twitter.com/greshamcollegeFacebook: https://facebook.com/greshamcollegeInstagram: https://instagram.com/greshamcollegeSupport the show

Copper Fox Metals CEO Elmer Stewart joins Natalie Stoberman from the Proactive newsroom to talk about the updated PEA for the Van Dyke copper project. Stewart says the updated PEA from 2020 has indicated an after-tax Net Present Value of US$644.7 million, an Internal Rate of Return of 43.4%, based on a 17 year mine life using a US$3.15/lb copper price. #proactiveinvestors #copperfoxmetals #TSXV #CUU #OTCQX #CPFXF #FSE #HPU

Want to receive this listing in your inbox? Signup for our weekly newsletter:https://www.getrevue.co/profile/acquanon-----Bill D'Alessandro (@BillDA) and Heather Endresen (@HeatherEndresen), we talk a lot about the Small Business Administration (SBA) and discuss interesting topics such as why the deals are going down and the important safety considerations for this environment. Heather also imparts a great deal of crucial knowledge on cash flow and risks that we should keep in mind in the current environment.We also talk about an Outdoor B2B eCommerce Brand. We get to witness Heather's informative knowledge of this type of loan. Additionally, we learn about the difficulty of seasonality when leveraging a business.Subscribe to our channel!-----Thanks to our sponsors!CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.-----Show Notes:(00:00) - Introduction(01:06) - Our sponsor is CloudBookkeeping.com(02:33) - Guest intro: Heather Endresen(04:06) - What is happening in the market in mid-October 2022? What's different from previous quarters?(05:45) - Who owns the larger companies in the space?(07:08) - What is the median SBA rate?(09:13) - What is the most important factor when acquiring an SMB?(12:25) - Is there room for valuations to correct, given the rate hikes decrease the Net Present Value of future cash flow?(13:23) - What is happening on the upper-quality end of this market, and how does that relate to the rest?(15:03) - In today's environment, where the risk is higher for the Bank, does it make sense to raise more equity for high-quality deals?(16:35) - How can I know if I'm being safe from the buyer's side?(18:12) - Seller Notes! Things you need to know as a buyer(20:27) - How to protect yourself with a seller note?(22:37) - SBA Loans & personal guarantees(26:30) - What happens in a default situation? How does the SBA operate in these cases?(29:17) - Can I choose an asset or cash to bring into the deal as coverage if the business is underperforming?(30:09) - Deal & financials: Outdoor B2B eCommerce Brand(32:34) - What is the first thing that you'd ask from a Lender's perspective?(34:21) - What is the challenge of seasonality when you've taken leverage on a business?(36:37) - What is the line of credit and how does it relate to the Quality of Earnings reports?(39:16) - The underbelly of SBA loans?(39:56) - How does the bank get comfortable with a Deal?(42:41) - What does SBA pre-approved really mean?(45:35) - What's the dynamic of Live Oak Bank?(51:02) - Reach out to Heather!-----Links:LiveOakBank@endresenheather----- Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

Want to receive this listing in your inbox? Signup for our weekly newsletter:https://www.getrevue.co/profile/acquanon-----Bill D'Alessandro (@BillDA) and Heather Endresen (@HeatherEndresen), we talk a lot about the Small Business Administration (SBA) and discuss interesting topics such as why the deals are going down and the important safety considerations for this environment. Heather also imparts a great deal of crucial knowledge on cash flow and risks that we should keep in mind in the current environment.We also talk about an Outdoor B2B eCommerce Brand. We get to witness Heather's informative knowledge of this type of loan. Additionally, we learn about the difficulty of seasonality when leveraging a business.Subscribe to our channel!-----Thanks to our sponsors!CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.-----Show Notes:(00:00) - Introduction(01:06) - Our sponsor is CloudBookkeeping.com(02:33) - Guest intro: Heather Endresen(04:06) - What is happening in the market in mid-October 2022? What's different from previous quarters?(05:45) - Who owns the larger companies in the space?(07:08) - What is the median SBA rate?(09:13) - What is the most important factor when acquiring an SMB?(12:25) - Is there room for valuations to correct, given the rate hikes decrease the Net Present Value of future cash flow?(13:23) - What is happening on the upper-quality end of this market, and how does that relate to the rest?(15:03) - In today's environment, where the risk is higher for the Bank, does it make sense to raise more equity for high-quality deals?(16:35) - How can I know if I'm being safe from the buyer's side?(18:12) - Seller Notes! Things you need to know as a buyer(20:27) - How to protect yourself with a seller note?(22:37) - SBA Loans & personal guarantees(26:30) - What happens in a default situation? How does the SBA operate in these cases?(29:17) - Can I choose an asset or cash to bring into the deal as coverage if the business is underperforming?(30:09) - Deal & financials: Outdoor B2B eCommerce Brand(32:34) - What is the first thing that you'd ask from a Lender's perspective?(34:21) - What is the challenge of seasonality when you've taken leverage on a business?(36:37) - What is the line of credit and how does it relate to the Quality of Earnings reports?(39:16) - The underbelly of SBA loans?(39:56) - How does the bank get comfortable with a Deal?(42:41) - What does SBA pre-approved really mean?(45:35) - What's the dynamic of Live Oak Bank?(51:02) - Reach out to Heather!-----Links:LiveOakBank@endresenheather----- Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

Tartisan Nickel Corp CEO Mark Appleby joined Steve Darling from Proactive to share news the company has completed and filed its Preliminary Economic Assessment for the Kenbridge Nickel Project in Ontario. Appleby telling Proactive the company's PEA is focussed on the underground mining at Kenbridge and showed a 9 year mine life on a 1,500 tonne per day underground mining and processing operation. Pre-tax Net Present Value is estimated at 182.5 million using a 5% discount rate. Pre-tax Internal Rate of Return is 26% with the payback period is being 3.5 years on an after-tax basis.

Personal Finance Core Concepts 1081 Net Present Value Assumptions

Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, Bank on Yourself, and want to learn more? Or maybe you're already using Infinite Banking, but would like to be able to explain it better to your spouse, your parents, your children, business partner, or friends. We're continuing our series on the basics of the Infinite Banking Concept and answering your "what" questions. Today, we're unpacking: What is the Cash Value of Life Insurance? https://www.youtube.com/watch?v=YVAk0pT7kgY So if you want to see how cash value works as a living benefit that enhances your life today … tune in now! Table of contentsWhat is the Cash Value of Life Insurance?How is Cash Value Related to Death Benefit?What is the Net Present Value of a Future Death Benefit?What Makes My Cash Value Grow?What is the Effect of Guaranteed Interest on My Policy?What is the Benefit of Having Cash Value?What Part of the Policy Can I Borrow Against?What Happens to My Death Benefit When I Take a Policy Loan?What Happens to My Principal and Interest on a Policy Loan When the Loan is Repaid?What If There Is An Interest Balance Leftover?What Can I Do With My Dividends?Book A Strategy Call What is the Cash Value of Life Insurance? What is the Cash Value of Life Insurance? Cash value is the equity portion of your whole life insurance policy that you can access and use. It is a part of your death benefit, not separate, and you can access and use it during your lifetime. Cash value accumulates in a few ways: premium payments, guaranteed interest, and non-guaranteed dividends.  How is Cash Value Related to Death Benefit? Because cash value is like the equity of your death benefit, the value represents the accessible portion of your death benefit. As your policy matures, it rises to meet your death benefit. So your cash value is designed to equal your death benefit by the time it endows. The current endowment age is 120. Since endowment represents your ability to access the full value of your death benefit, the policy pays out to you and the contract is complete. However, you're still guaranteed to receive the full death benefit if you pass away at any point before endowment. That's the power of a whole life insurance contract. But because the cash value is equity, not a separate account, the payout is not cash value + death benefit. You receive the full death benefit.  What is the Net Present Value of a Future Death Benefit? The Net Present Value of your future death benefit is another way of describing the equity in your policy. The “net present value” is the current present amount of your cash value account, which is a portion of your future death benefit.  What Makes My Cash Value Grow? Over time, your cash value grows as a product of your premiums, interest, and dividends. Your premium–the payment you make to keep your insurance in place–is the main source of cash value growth. However, insurance companies also guarantee that they will pay a certain amount of annual interest, as well as any company profits in the form of dividends. The cost of the insurance itself affects the growth. For example, premium payments must first cover the cost of insurance. When you pay a premium, that money contributes to payroll, investments, and commissions. The remainder is what you have available in your cash value. Since the cash value is the net present value of a future death benefit and the risk to the company lessens with time. Think about it: the risk to the insurance company is greatest when you open a policy. There's a chance, however small, that you only make one premium payment before you pass away. But because the policy is in force, the company must pay the full death benefit. Over time, you pay more and more into the policy, so the actual costs are decreasing and instead contribute more heavily to your cash value.  Another way to grow your cash value is through guaranteed interest.

IN THIS EPISODE, YOU'LL LEARN:Why Billionaire Bill Ackman says Adam's new book is one of the best investing book he's read in years.Adam's Business, Management, and Price (or BMP) checklist.Why value investors should reconsider investing in high-growth tech companies.Why Generally Accepted Accounting Principles (or GAAP) do an injustice for tech companies.The concept of “Earnings Power” and how it changes the Net Present Value.How to assess great management.How tech companies use new ROC metrics like CAC and LTV.And a whole lot more!*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.BOOKS AND RESOURCESWhere the Money Is Book.Adam Seessel's Linkedin.Trey Lockerbie's Twitter.Our tool for picking stock winners and managing our portfolios: TIP Finance Tool.Check out our favorite Apps and Services.New to the show? Check out our We Study Billionaires Starter Packs.Send, spend and receive money around the world easily with Wise.Find people with the right experience and invite them to apply to your job. Try ZipRecruiter for FREE today.Take the next step in your working-life or get ready for a change, by being a Snooze franchise partner. To learn more, head to Snooze.com.au and scroll down the page for “franchising”.Find Pros & Fair Pricing for Any Home Project for Free with Angi.Support your hardworking team in one intuitive platform by using Gusto, an all-in-one payroll, HR, team management tools and more. Go to gusto.com/wsb for your first three months free.Trade specifically based on your view of concrete events with Kalshi, a trading platform that can be used to counter falling portfolios.Get 50% off Remote's full suite of global employment solutions for your first employee for three months. Just visit remote.com and use promo code WSB.Invest in high quality, cash flowing real estate without all of the hassle with Passive Investing.Confidently take control of your online world without worrying about viruses, phishing attacks, ransomware, hacking attempts, and other cybercrimes with Avast One.Browse through all our episodes (complete with transcripts) here.Support our free podcast by supporting our sponsors.HELP US OUT!What do you love about our podcast? Here's our guide on how you can leave a rating and review for the show. We always enjoy reading your comments and feedback!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

TSX listed Candente Copper owns Canariaco Norte, a large, economic copper deposit in Peru that continues to advance technically and economically toward a sale or production decision. Now an updated Pre Feasibility Study has been released that strongly advances Candente toward one of those possibilities. Cañariaco Norte is a 100% owned feasibility-stage porphyry copper deposit; a single, contiguous, open-pit mineable deposit that now contains 14 billion pounds of copper; 4 million ounces gold ozs and 90 million ounces of silver. Not only that, it also has a sister deposit, Canariaco Sur, located 2km away that could help advance developments much quicker with 2.2 billion pounds of copper and 1.2 million ounces gold within an inferred resource calculated with only 15 holes. Collectively these 2 deposits demonstrate a staggering amount of metal. Canariaco Norte is in the lowest quartile of production costs for projects waiting to be developed at around $1.28c per pound of copper and a mine life of 28 years. If that doesn't have your attention, the third party validation will, look at these partners supporting Candente in 4 research papers comparing various global copper projects in the last 4 years as it now moves 2 deposits toward development: RFC Ambrian: top 10 of 23 projects with potential to involve third party M&A (DEC 21); Haywood: 1 of 18 assets selected as likely to be considered by majors looking to acquire (DEC 21); Deutsche Bank: 1 of 3 projects required to meet the upcoming copper supply-demand gap FEB 21 Goldman Sachs: lowest quartile of the top 84 copper projects worldwide (October 2018). Canariaco Norte is a deposit itching to become a mine and Candente continues to advance the project forward with studies evaluating various methodologies to reduce CAPEX, with multiple scenarios that support moving Canariaco closer to a production scenario. With the price of copper touching an all time high, the economics supporting Canariaco going into production only gets stronger with a Net Present Value of US$1.01B @ $3.50 Copper with CapEx of $1.04B. Copper is currently above $4.80, vastly increasing the value of Canariaco and Candente as a whole Watch this great interview with Candente CEO Joanne Freeze as walks through the recently announced PEA supporting the continued evolution of Candente and its world class Copper Deposits.

I hope you enjoy this weeks episode where I will educate you on incorrect terminal value calculations and the significant impact it has on the value of the company. This is valuable information to you because it can prevent you from settling on an incorrect value that can be too high or too low to the determine of your client.

Net Present Value (NPV) is a topic of the Commercial Real Estate Course. It helps us to find out the Present Value of an Investment or a Property. It is a very important concept that you can expect to see in your Real Estate Exams. Calculation of Net Present Value is a critical topic. Let's see What is Net Present Value and How to Calculate the Net Present Value of a Property with Calculation Solutions. Stay tuned for more of such updates. Check out our YouTube Channel for videos on other Real Estate topics.

We sat down with Osino Resources' CEO Heye Daun for a sponsor update. Recent drill results, like those that came before, have been encouraging and the company recently released a highly anticipated updated PEA, showing a pre-tax Net Present Value of $579 million and an after-tax NPV of $377 million (5% discount rate) with a 2.3 year payback and an internal rate of return of 38% (based on $1700 gold). Daun emphasized that during the current sector downturn, Osino has been focused on execution and delivery. He's been committed to building a top-notch team, keeping the company well-financed and pushing forward as the company grows and develops. With an aggressive drill program, the Twin Hills Project keeps getting bigger and bigger. This will eventually lead to a large shareholder payday (we own shares). With its recent upgrade to the OTCQX, Osino should be well positioned to capture more investor attention and a higher valuation once the sector regains favor. And with all that's going on in the world and increasing financial instability, that should be sooner rather than later. Tune in to hear Heye Daun discuss Osino's potential. Company Website: www.OsinoResources.com Ticker Symbols: OTCQX: OSIIF - TSXV: OSI  

This episode is also available as a blog post: http://marketplayer.in/2021/07/15/net-present-value/ --- Send in a voice message: https://anchor.fm/market-players/message

Net present value, or NPV, is a key metric applied to the valuation of assets or projects. So let's make sure you know what it is!

You can see all the videos in order at :    WWW.MYMICROSCHOOL.COM   Here you will find a lot of good templates and tutorials   http://www.swlearning.com/finance/brigham/theory11e/student_resources.html   References:   https://youtu.be/YwSrjbn0cPU   https://youtu.be/jt6WHPF_Ask   My Videos from I Hate Math Group: How to calculate bond price EXCEL , how to calculate Yield maturity EXCEL https://youtu.be/40LdiXks_so   How to find the Net Present Value by Hand Using the Formula   https://youtu.be/5uAICRPUzsM   How to calculate the bond price and yield to maturity   https://youtu.be/lP8B2zjuNIw

Mental Models discussed in this podcast: Terminal Value  Intrinsic Value  True Historic Value  Discounted Cash Flow Calculation  Net Present Value  Fog of War  Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. You can find out more information by listening to episode 11 of this podcast. Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode104 Why does Intrinsic Value grow over time? There are multiple ways to answer this question.  It doesn't. Intrinsic value is fixed, but your estimate of intrinsic value will change.  Your assumptions were wrong because you made a mistake.  Your assumptions were wrong because you can now see more of the future. A year moved from being inside Terminal Value to inside your forecast range.  What is Terminal Value? How is it calculated? Why does it matter? Terminal Value is the net present value of all future cash flows discounted back to a specific year in the future. (Perhaps 5 or 10 years from now) In other words, Terminal Value is your estimate of the Intrinsic Value of a stock 10 years from now. As each year passes, the "fog of war" that is the future becomes illuminated. That means that we can now *SEE* the future. Concept: True Historic Value  Summary: Terminal Value is the net present value of all future cash flows discounted back to a specific year in the future. Intrinsic value is fixed, but your estimate of intrinsic value will change over time. In addition, you can evaluate how the intrinsic value of a company has changed over time in the past by calculating the True Historic Value. This value is the intrinsic value at a past date assuming 10% future annualized returns all the way to the present.

In this episode, the guys discuss what they think about when analyzing investment opportunities. Here in the FI Garage, we’re all on the path to FI, however, we consider the RE part optional. #FIRE Beers – [0:30] IPA du Nord-Est from Boreale via Norbert Kallai (instagram, youtube) exchange [0:50] The Accountant’s putting up lights...

Today I answer a listener’s questions related to 1031 exchanges and triple net NNN properties. I also give a quick update of a couple recent NNN deals I closed including a $10M Walgreens, $5M CVS, triple net Pizza Hut and Family Dollar; all of which were 1031 NNN exchanges. Plus a new $16M NNN Walgreens listing we are selling. Here are the listener’s questions, we will call him “Dave” to protect his privacy: “We are reaching out to you to hire your services to find 1-2 income producing commercial properties totaling approx $​5​MM . ​ I listened to all of your podcasts (1031 Navigator). I visited your website and wanted to ask you the same questions that you suggested on your podcast! and a few others. 1) ​How long have you been doing NNN 1031s? 2) Are you​ CCIM and/or SIOR? ​ 3) Are you a member of local or national organizations? 4) What deals are you currently working? (we're looking for apartment buildings Class C or better, NNN or absolute NNN Commercial Income Producing Properties, triple net) 5) Should I educate myself in a certain area, website, read a specific book while doing the NNN 1031 exchange?​ Or do you or someone in your office offer explanations or education on how our potential purchase is evaluated? ​ 6) ​I noticed that you asked me if I was representing my family as broker/agent. Just want to know why and if that effects our relationship / deal preference etc... ​ 7) How will you be getting paid, by the listing agent or the buyer 8) ​What is typically the 1st income producing property that your clients, who have little property management experience, 1031 exchange into and feel comfortable with?” Topics mentioned in this episode: - 1031 exchanges - triple net NNN investments - reverse 1031 exchanges - SNTL deals: Walgreens, CVS, Dollar General, Family Dollar, Pizza Hut - CCIM, ICSC, SIOR, ULI, CIPS - Zero Cash Flow - NNN experience - apartment, multi family and trailer park - passive income - financing for commercial real estate - IRR, Cash on Cash, net cashflow, - absolute net v. Triple net - ask a free real estate question - cap rates, CAM, property management - income property fundamentals - CRE blogs and podcasts - Howard Klein, Duke Long, Bigger Pockets, Behind the Bricks - 1031 exchange blogs and Qualified Intermediaries - 1031 NNN Books: David Sobelman - buyer brokers - who pays fees - loopnet, crexi - lazy brokers - property management risk - 15 year net lease - TSC - Tractor Supply NNN - Sherwin Williams NNN - "set it and forget it" investments Thanks for listening! _______________________________________ Today’s show is made possible by 1031Navigator.com 1031 Navigator is the easiest way to plan and execute your 1031 exchange while saving you both time and money. 1031 Navigator specializes in sourcing passive income NNN properties nationwide customized to your 1031 replacement needs. Their triple net investment properties produce hands off passive returns of 5 to 7% and are secured by investment grade tenants like CVS, Dollar General, and Firestone with 15-20 year leases. Get your FREE personalized 1031 consultation at: 1031navigator.com/free _______________________________________ This podcast is a collaboration. Without you the listener, it would not be possible. We welcome your participation and would love to feature you on the show. Ask a FREE investment question: Listener Hotline: 970-300-1994 or visit compound.global/talk _______________________________________ Net Present Value is brought to you by TMO and compound.global an impact investment studio. We ask ourselves everyday: "What Good Shall I Do This Day?" What the F are you doing?

Today I answer a listener’s questions related to 1031 exchanges and triple net NNN properties. I also give a quick update of a couple recent NNN deals I closed including a $10M Walgreens, $5M CVS, triple net Pizza Hut and Family Dollar; all of which were 1031 NNN exchanges. Plus a new $16M NNN Walgreens listing we are selling. Here are the listener’s questions, we will call him “Dave” to protect his privacy: “We are reaching out to you to hire your services to find 1-2 income producing commercial properties totaling approx $​5​MM . ​ I listened to all of your podcasts (1031 Navigator). I visited your website and wanted to ask you the same questions that you suggested on your podcast! and a few others. 1) ​How long have you been doing NNN 1031s? 2) Are you​ CCIM and/or SIOR? ​ 3) Are you a member of local or national organizations? 4) What deals are you currently working? (we're looking for apartment buildings Class C or better, NNN or absolute NNN Commercial Income Producing Properties, triple net) 5) Should I educate myself in a certain area, website, read a specific book while doing the NNN 1031 exchange?​ Or do you or someone in your office offer explanations or education on how our potential purchase is evaluated? ​ 6) ​I noticed that you asked me if I was representing my family as broker/agent. Just want to know why and if that effects our relationship / deal preference etc... ​ 7) How will you be getting paid, by the listing agent or the buyer 8) ​What is typically the 1st income producing property that your clients, who have little property management experience, 1031 exchange into and feel comfortable with?” Topics mentioned in this episode: - 1031 exchanges - triple net NNN investments - reverse 1031 exchanges - SNTL deals: Walgreens, CVS, Dollar General, Family Dollar, Pizza Hut - CCIM, ICSC, SIOR, ULI, CIPS - Zero Cash Flow - NNN experience - apartment, multi family and trailer park - passive income - financing for commercial real estate - IRR, Cash on Cash, net cashflow, - absolute net v. Triple net - ask a free real estate question - cap rates, CAM, property management - income property fundamentals - CRE blogs and podcasts - Howard Klein, Duke Long, Bigger Pockets, Behind the Bricks - 1031 exchange blogs and Qualified Intermediaries - 1031 NNN Books: David Sobelman - buyer brokers - who pays fees - loopnet, crexi - lazy brokers - property management risk - 15 year net lease - TSC - Tractor Supply NNN - Sherwin Williams NNN - "set it and forget it" investments Thanks for listening! _______________________________________ Today’s show is made possible by 1031Navigator.com 1031 Navigator is the easiest way to plan and execute your 1031 exchange while saving you both time and money. 1031 Navigator specializes in sourcing passive income NNN properties nationwide customized to your 1031 replacement needs. Their triple net investment properties produce hands off passive returns of 5 to 7% and are secured by investment grade tenants like CVS, Dollar General, and Firestone with 15-20 year leases. Get your FREE personalized 1031 consultation at: 1031navigator.com/free _______________________________________ This podcast is a collaboration. Without you the listener, it would not be possible. We welcome your participation and would love to feature you on the show. Ask a FREE investment question: Listener Hotline: 970-300-1994 or visit compound.global/talk _______________________________________ Net Present Value is brought to you by TMO and compound.global an impact investment studio. We ask ourselves everyday: "What Good Shall I Do This Day?" What the F are you doing?

Mental Models discussed in this podcast: Intrinsic Value Extrinsic Value Define your terms Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. You can find out more information by listening to episode 11 of this podcast. Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode90 Extrinsic Value vs Intrinsic Value Definition Tweet: “Be very careful when describing an asset's “value.” Define your terms. They matter. Intrinsic value is the NPV of all future distributions of cash. (Not the NPV of FCF) Extrinsic value is the market value as determined by others for any reason at all. Responses: This is an extreme view What about Berkshire? What is their cash worth? My thoughts: “There is no fundamental difference between equity that doesn't distribute cash *ever* and a bond with a 0% interest rate that not only doesn't make interest payments but also defaults prior to returning your principal. How much would you pay to own that bond? “If I knew *with certainty* that a business would never distribute cash. (Dividends, buybacks, or liquidation) Then the company is fundamentally worthless to shareholders. It means all of its growth is for nothing because it will reach bankruptcy before giving cash. Summary: Be very careful when describing an asset's "value." You need to define your terms because they matter. Intrinsic value is the Net Present Value of all future distributions of cash. (Not the NPV of Free Cash Flow) Extrinsic value is the market value as defined by others.  By focusing on intrinsic value investors can alleviate the need to predict price action in order to turn a profit. Investors, as opposed to speculators, earn their return from business performance. Therefore, it is critical to focus your time and effort on studying business performance. 

Mark, Clay, and Nick discuss the calculation of financial metrics in an energy based project. Our team of industry experts covers the most simple financial calculation (Straight Line Payback) to more of the complicated measures such as Net Present Value with depreciation and everything in-between. We discuss when each is appropriate and how to apply these financial calculations to a project. Tune in for a behind the scenes look in to the financials of energy based projects!

EP224 - Cohort Analysis and CLV with Daniel McCarthy  Daniel McCarthy (@d_mccar) is an Assistant Professor of Marketing at Emory University – Goizueta Business School, he’s one of the industries top thought leaders in the field of customer lifetime value (CLV). In this episode we discuss how CLV and customer cohort analysis can be be used operationally within e-commerce companies, as well as how customer data can be used to calculate a companies true enterprise value, customer-based corporate valuation (CBCV). Dan co-founded a predictive analytics company, Zodiac, which was later acquired by Nike. He’d made news several times by applying his CBCV to popular public companies using their public disclosures. Listen to this episode just to hear Scot say “Goizueta.” Dan’s personal website Theta Equity Partners – Dan’s current firm, focused on CBCV McCarthy, Daniel; Fader, Peter (2018). “Customer-Based Corporate Valuation for Publicly Traded Non-Contractual Firms”. Journal of Marketing Research, 55(5), 617-635. Link (download) McCarthy, Daniel; Fader, Peter; Hardie, Bruce (2017). “Valuing Subscription-Based Businesses Using Publicly Disclosed Customer Data”. Journal of Marketing, 81(1), 17-35. Link (download). McCarthy, Daniel; Fader, Peter (2020). “How to Value a Company by Analyzing Its Customers”. Harvard Business Review, 98 (1), 51-55. Link Don’t forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 224 of the Jason & Scot show was recorded live on Thursday, June 25th, 2020. http://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. Transcript Jason: [0:24] Welcome to the Jason and Scott show this is episode 224 being recorded on Thursday June 25th 2020 I’m your host Jason retailgeek Goldberg and as usual I’m here with your co-host Scott Wingo. Scot: [0:39] Hey Jason and welcome back Jason Scott show listeners well folks we have a really awesome treat for you today it’s so good that I want you go ahead and pause the show here and leave us a five star review and then come back. All right welcome back, today on the show Jason I have to admit we are kind of fanboying here so we’re going to try not to giggle too much during this interview we are excited to welcome one of the brightest Minds not only in e-commerce and Retail marketing but just marketing overall so please welcome Us in bringing Daniel McCarthy to the Jason Scott show Dan is the assistant professor of marketing at Emery’s Gazeta business school Dan welcome to the show. Dan: [1:24] Thank you for having me Jason and Scott. Scot: [1:26] Did I say that right. Dan: [1:29] Pretty much. Scot: [1:30] Glue is that a little bit more of a quiz that kind of thing in there. Dan: [1:34] It’s like sweater but boy sweater. Scot: [1:37] We sweater okay I got it all right thank you. Jason: [1:40] That that is actually part of the screening process to get into the school there’s you have to be. Scot: [1:45] Yes this is why I’m not a professor of marketing at that school whose name I’m not great at pronouncing. Dan: [1:51] Let’s check number one for us. Jason: [1:55] I think in Dan’s case there might also be a math requirement that you may not like. Scot: [1:59] Yeah I saw you had some stats at his background there. Jason: [2:02] Exactly so Dan before we jump into what we do like to give the listeners a little taste of how you came to your your current professorship in your your case can you tell us a little bit about your background. Dan: [2:17] Yes I’d spent about 60 years working at a value-based hedge fund before coming back actually for a PhD in statistics at the Wharton School, and in the middle of the Ph.D program I made a pivot into marketing and so I actually I finish the PHD in statistics but half my committee when marketing people and half works this six feet below, and I ended up becoming an assistant professor of marketing at Emory University along the way I also was bitten by the entrepreneurial bug so in the, leave us in a third year of the PHD myself and my adviser had co-founded a company called zodiac which was a predictive analytic software as a service firm you basically, predictable customers we do and use that to help marketers it can acquisitions. [3:08] We grew that and then sold that in March of 2018 to Nike and then the following month we had also, co-founded a company called Theta Equity Partners which pretty much does nothing but what was the topic of my dissertation which we now in the early call customer base corporate valuation or CP CV for short so yes I kind of. Straddle Both Worlds and say 100%, you’re kind of a Quant marketing academic but definitely we appreciate. You know things that work in practice and and even participating in that myself. Jason: [3:50] Very cool and I did want to touch on a couple of things in your bio super quick hey I love the fact that PhD in statistics wasn’t challenging enough so you you pivoted to the the super complicated world of marketing. Dan: [4:04] Yeah it was a it was a tricky transition I would say on the plus side, you basically is doing the same predictive modeling that I was as of you know I’m just going to get a stat PhD and become a stack Professor sort of thing but now it’s just predicting what customers will do instead of predicting you know. Anything pretty much in stock prices or. Various things about sports teams or whatever else it was that we were doing pre-marketing pivot. Jason: [4:38] And I for sure want to compliment you I feel like you’re in the small percentage of people that did a dissertation on something that you could totally commercialize so I think that’s super smart and savvy. Dan: [4:50] Yeah it was weird how it kind of ended up that way but I really think it was yeah I kind of view customer base corporate valuation is really being at the intersection of, marketing finance and statistics like you really can’t crack that topic without going pretty deep into all three I think, and I think one of the things that Drew me to it was the fact that it allowed me to kind of do everything that, I just find it be fun so you had the buy-side hedge fund experience I could bring that in the statistics I can bring that in and then, obviously pretty King with customers will do bring in the marketing to. Scot: [5:27] Oh dear so why did you make that marketing pivot to was there you were in stats and you kind of like started to do something connected to marketing or what what was the connective tissue there. Dan: [5:38] I blame Pete fader yeah he is that a name that comes up a lot with the sort of things that I do but someone who actually had worked out of the stats Department, he said you know I think that you really get along with this to be fair guy and he’s a marketer but let’s not hold it against me. So yeah I basically went up to the seventh floor which is where the marketing department is and Warden and yeah we really just kicked it off I just really enjoyed the problems that he was working on and yeah I like them enough that I just said I want to do this, you know I want to do this all the time. Scot: [6:16] Yeah, very cool well you kind of raised us let’s jump into this so I’ve enjoyed your your analysis your analyses that you do on Twitter and your papers but let’s talk about CBC TV, let’s talk about the origin of it and how you are applying it to think about valuations. Dan: [6:38] Yes really yeah a lot of the early work that I had done was to use these marketing models to predict what customers will do in the future and use that to compute customer lifetime value and other related measures. And, typically in marketing that’s where the exercise ends you say alright you know we predicted well they are completely I’m done and, basically because of my work in valuation I was like we could take this a step further and use this to actually inform view as to how companies doing his whole and obviously I won’t say that I’m the first one thing about this you Pete had done some work in this area and, yes even some work going back to 2004 but it was mostly kind of proof of concept not super well validated models. And it was really. Yes saying let’s kind of peel back the onion a bit further with this and I think that’s really kind of one thing led to another and you know I now have, three academic Publications and other two along the way on the topic and basically there’s just so many different facets of the problem that I designed to be completely fascinating. Scot: [7:50] Well in my world of startups we think about valuations at a pretty simple kind of you know kind of multiples right so you have a revenue kind of calculation you have an ibadah kind of a calculation then it’s I’ve gotten into Wall Street analyst you know they’ll do a variety of discounted cash flow projections and these kinds of things how is this different like what what do you what is this take into consideration that those those kind of mechanisms don’t. Dan: [8:16] Yeah that’s the beauty of it it can really be all of the above it can be used to do an enlightened version of to come up with an enlightened Revenue multiple ebitda multiple, you know kind of straight up discounted cash flow valuation because ultimately if I were to kind of just summarized with cdcd is is it’s a way to, make a more accurate Revenue projection by really exploiting the fact that all the revenue has to come from customers who have to be acquired, retained make purchases and have spend associated with those practices and so a typical Wall Street analyst will, look at historical revenues the bring in macro variables and use that to help inform of view as to what revenues will be in the future and ultimately that revenue forecast will drive the DCF model or the ebitda forecast. And over saying is. If the company has a lot or even even a little customer data that they’ve disclosed let’s bring that into and in marketing, we spent so much time and energy building these predictive models for customers will do and it’s just basically saying it’s use those predictive models that are super well validated from within marketing. You do that Revenue projection just a bit better and do it from the bottoms up instead of doing it purely from the top down. Scot: [9:40] So you’re essentially bringing customers into the valuation discussion crazy, it’s amazing sometimes don’t you wonder like why no one’s done this before no offense but like so he sings seems so obvious in hindsight but no one you know it just like not a common thing. Dan: [9:55] Yeah that and this is video clip that will sometimes show of Jim Cramer talking about this work yet, he brought up and spent a bunch of time on our way Fair analysis and he’s like what’s so special about this you know academic research where these academics doing well they they try to put a value on the customer, and they compare how much you spend to acquire the customer to how much he get after the customers require you like. Duh seems kind of sensible to me but but it hadn’t been done before and I think I think that was the real opportunity. Scot: [10:30] Yeah I think the first time it hit my radar is you wrote a really good article about Blue Apron so they were one of the you know they have this huge valuation they had filed their S1 and then you put out you know I’ll use the word scathing but I think it was like, that that may imply something that’s not there a surprising analysis around their unit economics is that kind of the first time that that that really hit the the radar. For you. Dan: [10:56] That’s the first time it really got mainstream attention. Scot: [11:00] Yeah so for listeners that didn’t see that maybe give a brief summary of what you discovered when you kind of peeled onion on the customer metrics that were in this one. Dan: [11:09] Yeah basically the company was growing really quickly and it’s something like a hundred percent Revenue growth you know year-on-year and, they didn’t disclose a whole lot about customer churn and I was like huh that’s interesting for a subscription business you think they would put something about that in the filing and so, the interesting what thing was that even though they didn’t put anything about customer churn they didn’t disclose a number of other scraps and so, basically what I did was use the methodology that I just published and use that to kind of triangulate my way back into what the company’s retention curve Wise from all those different scraps that they put into their, cipo prospectus and and you’re right near the conclusion was kind of damning that something like seventy percent of the customers churn after six months. And you know obviously the implication being that they were acquiring a lot of customers I think on promotion and. [12:08] And they just weren’t staying and and the other kind of, even more damaging data point was that even though they were growing really quickly their marketing spend was growing even more quickly. Then that and so essentially what I had inferred from the model was that their acquisition cost used to be something on the order of 60 dollars, and it’s something like doubled you know in the run-up to the IPO. So yeah they were buying Revenue growth so they showed strong top-line growth but the underlying fundamentals of the business that gotten significantly worse that they were actually, reasonably profitable at you call it a $60 CAC but if you double that you know it just makes things a lot worse on a per customer profitability basis. Scot: [12:58] Yep losing money to acquire the customer and then making it up and scale is never you know I think we always call that the pets.com business model but somehow chewy got out of that we’ll talk about that later so I think the finish the story I think I think everyone said that you were crazy your analysis was dumb this is again me as a third party watching this from afar you know they had a huge IPO and then suddenly I don’t know how many quarters it took but suddenly the Dynamics you had anticipated came true and that must have been kind of self must have been interesting to be proven right by that. Dan: [13:35] Yeah it was kind of a surreal experience the most surreal was we were going on a vacation and I just remember looking at my phone you know we just were having lunch outside of a grocery store. And that post had just gone viral it ended up getting like. I don’t know we broadcasted whatever the term is unlike a hundred different websites and and, of all of the bases all sorts of like LinkedIn comments and all sorts of other engagement measures they were all kind of hitting at the same time and I had never experienced anything like that before. [14:16] Yeah so. Scot: [14:18] You’re like maybe yeah awesome so so I’ll kick it over to Jason I’m sure you have some follow-ups on this. Jason: [14:29] Yeah I’m always saying this tongue-in-cheek but like it turns out that the one flaw in your whole model is you didn’t factor covid into the blue apron. Dan: [14:40] Yeah I know I always say if we were in January there’s nothing that we would have not predicted covid so it’s no Magic Bullet. Jason: [14:53] But I do feel like they are one of those companies that has at least had a tertiary benefit from from the current climate. Dan: [15:03] Yeah I think that one other fish related point is there’s a distinction between the predictions and the framework, and I think at the end of the day no one can argue the framework has to be true. And even the covid Boost that they’re getting I think the framework can be super helpful in thinking about that is it coming from repeaters who are just repeating more or is it coming from a whole bunch of new people that are going to stay. So so the framework always has to be true it just provides this additional Dimension but our predictions that’s a function of the model of the data that’s available and obviously of, things like covid happening. Scot: [15:45] The thing that must be surreal is I got the like you I have a weird Hobby and that I love to read us once so I think I think the three of us kind of are probably only, people that have that hobby but so I was reading to stitch fix that’s why I was like you know I wonder what kind of churn they’re going to give and then they had all this cohort analysis detailed turn now since I was like wow the Blue Apron dude like totally has changed the disclosures around this stuff you know I don’t know if you viewed it positively or negative but it was like really fascinating where you can tell that people are like all right people are going to look at these, there’s no way for us to hide what’s going on in here so we might as well reveal at least what we think are the good aspects of these underlying metrics I thought it was pretty interesting that it felt like you had some role in kind of making that happen so I was pretty cool. Dan: [16:33] Yeah they put a lot more in instead of definitely hats off to them I would have wished and so after they had filed their ass when I have acid was Point through that thing very carefully to I wish that they had something like cohorted revenues over time if they put something in like that then, for sure you would have seen an analysis from for me / just the reason we didn’t do one was because they there, they’re non-subscription enough that I wouldn’t feel comfortable modeling them as a subscription business and and it wasn’t quite enough data, to fully immuno account for all the facets of there being a non-subscription business. Scot: [17:15] It’s probably funny so on the other side that’s probably what they’re going for they’re like how do we how do we do this so that Dan doesn’t write a paper on, not not that would be negative or positive but you know there’s the the Blue Apron case study was not a on the other side of the table you probably wouldn’t want you know that happens. Dan: [17:33] I flip it around and paper number three so you know it is paper number one was all right let’s lay out the framework for subscription businesses so this nails down to telcos the Jim’s the blue aprons of the world the second one was all right let’s lay out the framework for non-subscription so these are all the e-commerce retailers, and then the third one was let’s lay out a model for. Businesses where we’re not only incorporating SEC disclosures like whatever we find in S1 but also, credit card panel data which the hedge funds are all buying consuming voraciously and now that that their credit card panel data is wonderful for Stitch fix in particular its. The panel seems to be quite representative of their customer base and in so, I think that that’s kind of one of the emerging Frontiers for this whole area is it can we be able to incorporate other data sources to, to be able to kind of do this exercise for more companies or you just have more confidence in the results because we have more data at our disposal. Scot: [18:36] Yet the thing I found so I did an IPO of Channel advisor in the thing I found really weird is you go public and you know you’re going to be doing all this transparency but all your advisers are telling you to be really careful with what you disclose because you know if you just there’s this feeling that all the stuff you disclosed and that’s one you’re going to have to disclose forever and there may be some reason where you want to wind down a business line or pandemic hits and some of these metrics kind of Swing different ways so so in the operation side everyone’s giving you this advice to minimize what you disclose which I found as a you know, as a private company it was oddly kind of the opposite of what I thought being public would be like so it’s interesting to be on the other side of the table from of that stuff. Dan: [19:26] Yeah we’re starting here bit more of that too and certainly we’ve heard the same thing like anything can and will be used against you and so so there’s kind of this risk-reward asymmetry that incentivizes companies to try and discuss as little as possible, so and certainly I think that there’s kind of a fine balance to be drawn where you know I’ll be the first to say this is a certain line past which it is competitively sensitive and you don’t want to necessarily open up the kimono so all your competitors know exactly what you’re doing but I think there is kind of a middle ground where there are measures that companies can put in that. They’re very not competitively sensitive but super informative they tell investors a whole heck of a lot of information about you know how the companies doing. And and there’s small in number so we’re not asking for you know a dozen different things you were just asking for like three things, I think that hopefully is how we can help kind of move the conversation forward that that. We put something out there but we make sure that it’s reasonable and it’s not overly costly to to the disclosure. Jason: [20:38] And I do want to double click on that just a little bit like it does seem like so there’s a, a fundamental part of your framework the customer cohort chart this III and it do I have this right like it does seem like some companies are starting to include C 3s in their disclosures. Dan: [20:56] It shows up a lot more than I thought that it either it’s that it shows up a lot more than I thought that it did or that, yeah maybe if you know we’ve had some small influence that more companies are disclosing because we’re yelling so loud maybe some combination of the two. Actually Scott I think it goes back to one of the other points you raised I would love to see more companies disclosing that data and non S1 filings I feel like, there is now at least a couple dozen companies that have put that in the S1, as soon as they go public and they start filing the case in the queues OR investor presentations I stop seeing it it’s like two companies I know of it still disclose it. Scot: [21:40] Yes so the advisors that give you all these case studies of where it has been companies in the but so classic ones Twitter right so so Facebook got out first and they started talking about it may use monthly active users so then Twitter launched and they just kind of went with that kpi and then that kpi slow down on them very quickly whereas Facebook’s accelerated and everyone always uses that as you know if they hadn’t disclosed that and then what happens is the other thing that I see that super surprise me first time going public was all the short hedge funds and some of the nasty tricks they do so they’ll take any of these metrics you put out there that could be cast in a bad light and they’ll use them against you to create a short trap kind of a thing so so there’s all these case studies of that and then you know we’ve fallen into, over the years you’re just shocked by the behavior that goes on with with some of these these crazy firms I guess I was super naive that I thought it was more like VCS but at this whole super high level where everyone’s going to be like you know I’m Fidelity and I’m really on board with your company for the next 10 years there is that but it you know right now it seems like it’s the minority versus the majority is a lot of these kind of long-short hedge funds that do all kinds of wacky stuff. Dan: [22:50] Yeah yeah it’s nice. Scot: [22:52] Yeah yeah. Jason: [22:54] But so Dan you know what would be helpful for some of our listeners that may not be as familiar with clv analysis and some of your work can you like, this is hard on a podcast can you paint us a word picture of what a cohort analysis is and what that C3 looks like. Dan: [23:13] Yes of course the first Steve this may be the easier one is the C3 that’s simply saying you know if you if you open up a 10K, it’s going to show annual sales year by year you know so 2015 16 17 18 19. [23:30] This would be the same except it’s in a chart format where the height of the bar is the amount of total revenue. But it’s tax that so you kind of brace it down by acquisition cohort so you know for a company that, imagine it company was the first went public in 2016 and now we’re here in 2020, they’re at here’s our sales in 2020, here’s how much came from customers that were acquired in 2016 here’s how much came from customers and required 2017 2018 2019 and so on. So it’s basically chopping up that Revenue bar into acquisition cohorts and showing that over time and what it allows investors to see is. When a company acquires a group of users. How much revenue is that company getting from those users in future years as it going up is it going down and if it’s a b2c business you kind of expect it to move move down. And hope that is that doesn’t move down very much in other sectors like software as a service businesses typically if you’re seeing a C3 chart, you probably seeing expansion over time they acquire a bunch of customers and then in future years to getting more revenue from those same customers than they did in the previous year. So yes it is a whole lot of information you can get from a C3 in conjunction with everything else that does companies tend to provide. [24:59] And it goes back to that I think to the first question of what is a proper cohort analysis and it really is just that it’s saying let’s look at let’s not just look at everything that happened in 2020. Let’s look at things by acquisition cohort you know let’s eundel together all the people who are first acquired in 2016 and say, how good were they and then let’s compare it to all the people that were required in 2017 you have good with a and if you repeat that exercise across all these years. This whole new level of understanding of how healthy a businesses. Scot: [25:37] So for like an e-commerce business where you’re not going to have a huge let’s take subscription e-commerce businesses out of it like let’s say a Macy’s or someone like that that has you know just kind of a more transactional model what are you expecting that for your to look like like what’s a really good looking at wind what’s a terrible one. Dan: [25:56] Yeah General generally in transactional business like Macy’s or any other you know B to C typically customers were melting Ice Cube and. And so you’d be pretty happy if you know four years out you’re still getting, twenty percent of the revenue that you had gotten when you first acquired those users. But they’ll drop off pretty quick so you know so certainly. My general Pryor is is that Revenue retention tends to be on the very low side unless you’re truly one of the exceptional retailers. Scot: [26:38] Have you ever done it for Amazon. Dan: [26:42] We have not because they have really Rain back there disclosures unfortunately. The other yeah the other issue with them yeah so they disclose like active users but they disclosed nothing about the number of customers they’ve acquired in different years. Obviously if we even if we did have the information probably right now it’s like zero because everyone’s been acquired but the other wrinkle with them is I think you many people would argue they’re making most of their cash flow from there, from the cloud computing business and so. Retail business is certainly it’s an important piece I think you know a lot of people short change it because they don’t take into account the you know- working Financial working capital position that they have. But still there’s so much else to their business that it is a little bit tricky. Jason: [27:39] And I like I do like obviously we’ve been focused on company valuations which is a super interesting use case and obviously quite important but. Company valuation is far from the only reason you’d want to be doing a cohort analysis if your acquisition cohort analysis if you’re a company right like isn’t it, even if you’re getting if you’re a private company and you’re not going to disclose anything it seems like there’s huge benefits to understanding the value you’re getting out of those Acquisitions and. Helps you plan future Investments no. Dan: [28:15] Oh tremendously so yeah and actually said for example the the marketing use cases I think are at least is compelling to marketers as yes it is from a valuation perspective to the CFO yes I kind of I think of this way of looking at the world is kind of like the the translator that allows marketers to speak with the finance people and have a common language between, and I think it can allow marketers to communicate the value that they’re creating, in a way that Finance people would would respect and understand. And in Reverse yes I think you finance people can then you communicate that on to their investors which increasingly they’re having to so so suddenly I think, as these ideas take hold a bit more it’s as if the CMO becomes a lot more powerful because they’re kind of the trusted advisor they can actually really explain. What the heck is going on with the customer base in a way that the CFO is just not going to be able to but at the same time they’re going to be a lot more accountable because suddenly, everyone is really obsessing over things like the retention curve which are probably a little high level for your typical CMO and they typically are thinking about. More tactical measures. Jason: [29:42] Yeah and I if you don’t mind I would like to double click on that a little bit just a side note for listeners it’s funny we often call those the visual cohort analysis we caught a wedding cake. Um which I think is like a good mental image right like because you you see all these new new colored layers of. Different acquisition cohort stacked on top of each other and if things are going well the layers get like thicker in the in the middle over time. Is that is that an industry term or did I make that up. Dan: [30:18] You know I had never heard of the term before. Jason: [30:21] All right well I we use it with multiple clients so I don’t know yeah so you. Dan: [30:26] I like it though. Jason: [30:27] Dan you can have it for free but in exchange you can settle an age-old question for me customer lifetime value clv lifetime value LTV, I hear people use those acronyms interchangeably like are they different and is there one that you officially prefer. Dan: [30:47] I yeah I think that there is a lot of questions about you know what should be defined as what I’ve traditionally defined those is being equivalent to each other. But distinction that I draw actually is one that I’ve I haven’t really heard other people draw which is COV or LTV versus the post acquisition value of a customer so. To me I think the to two key components of a customer’s value or how much you spent to bring them in the door and that’s the CAC. And then all the value that you get after the required and to me I call that the post acquisition value of the customer, and so if you take the P AV and you subtract off the CAC. That gets me the customer lifetime value but there’s just so many people who actually would say that clv is p AV and and they’ll have no definition for clv. So so I think you have one of the first things that I’m really hoping that we can do it’s almost the simplest thing it’s just, let’s agree on some common common definitions for these terms you know I think that everyone would benefit and to be a lot less confusion when we’re all talking about, these terms and and potentially having different ideas in our heads as to what they actually mean. Jason: [32:08] Yeah no I think that would be super helpful because that it is, I you know in the virtue of my job I go into a lot of different clients in the vernacular is totally different and this you met your eyes may roll in the back of your head but I would even say like a monk my client base. Dan: [32:29] Yeah one also clv I’ve so frequently see people Computing it just off of sales they’ll not even factor in causing. Jason: [32:37] Yeah it’s Revenue it’s like customer lifetime Revenue not customer lifetime value right there. Dan: [32:42] Yeah you know finite Horizon forecast and you know just the list goes on and still all the different ways you can kind of screw it up in my view. Jason: [32:52] So I have this kind of simple mental picture of how this whole discipline involved and I’d love for you to confirm that I have it right or correct me if I’m wrong, um but I sort of imagined that in the early days of thinking about COV that it was primarily a marketing kpi, and then it feels to me like it evolved into being in really good mature companies it evolved into being a corporate kpi, and then you know largely because of your your paper and and blue not Blue Apron going viral. Now it’s become a corporate valuation tool like is that is that the matriculation then it sort of food through our time I’m making that up. Dan: [33:34] I think it’s definitely the case that COV has been born and raised a marketing marketing kpi. Yeah and I think now we are seeing a gradual progression that it’s showing up more in investor decks which has been super heartening to see. [33:52] In terms of the link to cut the corporate valuation so our work will very frequently talk about customer lifetime value. But usually it’s kind of a summarization of like the unit economic health of the firm it’s obviously a really important one. But but actually we kind of focus on on this other thing that, I think some people will call it customer Equity you know I’ll call it customer base corporate valuation was really drawn this distinction between, you kind of a per customer measure of profitability and the overall value that’s being created and. In Canada the example that I often give is if you wanted to maximize the clv of your business. You should go after this super tiny Market where this is like a few super good customers in it and and they’ll all be great you know but there’s so few of them that you leaving money on the table you know so, it’s kind of what we want to maximize this kind of like P times Q you know like the quality times the quantity and. And so I’ll actually kind of have this notion of the five Horsemen of CBC TV. And that’s actually you know what would companies should be striving to optimize. Jason: [35:15] I love that and I I’m a big fan of those sort of false of using a metric as a kpi because per your point like you can just manipulate one of the variables and make it awesome. I frequently help clients in Pre increase their conversion by just dramatically reducing their traffic to their best customers for example. The so I and I do have a bone to pick with you and I’ve been really good about trying not to bring it up until now but I just can’t resist. I primarily work with marketers and in my world like even LTV is a metric is. A vastly superior metric to what a lot of my clients tend to live in like sadly like I have a lot of clients that. You have tpi’s around things like Awards and return on ad spend which. Find abhorrent right and so often we’re trying to move people towards more financial base, measure right rui measurable quantifiable metrics and you mentioned in the intro that you you started this previous company zodiac, which actually provided both tools and services that help companies, make that progression and you don’t know this but I actually prescribed zodiac to a bunch of clients and then you went ahead and sold the company to Nike and they promptly fired all of my clients. Dan: [36:39] Yeah that that was the most difficult part of the sale was honestly we. We’re academics you know so we we almost feel like this semi-religious you no desire to get people to use customer lifetime value to be using these models and benefiting from them, instead of kind of get these companies to buy in and then kind of you know have to we didn’t fire them we were forced to. Jason: [37:08] Sure sure no I’m mostly nobody blames you for doing, in your own best economic intro I’m teasing you but it was like it, useful tool and I am curious and it’s fine if you want to pass on the question but there are some other companies that have emerged. I wouldn’t say have the exact same offering that zodiac had but. Some sort of overlapping value prop and so I think if companies like ambition data or dynamic action and I’m just curious if you’ve ever looked at them or or even better review you’ve come across any other companies that you think are doing a good job and that’s. Dan: [37:45] Yeah thankfully a lot of them are friends of ours so so ambition data Allison heart cells the good friend they do some good work there certainly I think they’re more tactically oriented and zodiac was but I think their philosophies are you’re very consistent so both Peter fader and myself we’ve been on under podcast as well, retina that AI is another one that I like with the what they do they basically have a version of a probabilistic model for how customers behave and, and they’ll use that to help you know oftentimes marketing analytics departments you make acquisition retention decisions but I wouldn’t also leave out Theta so you clearly I’m not here to, that’s a pitch the company but I’d say about half of our revenue is actually coming from corporates directly and in while we’re not helping the marketing department make those tactical acquisition retention decisions, we do provide kind of the, a lot of the Machinery that we use to make the predictions is very similar or even better than Zodiacs we use it to obviously summarize how the business is doing in terms of. [39:02] Clv in CAC over time, but then also slice that by you know things like acquisition Channel and so to the extent that you want those very highly validated predictions to, to see where you’re getting the highest return on investment you say by acquisition Channel this would would give you that so. Jason: [39:23] Very cool okay, so and Scott’s chomping at the bit to get back into the conversation but I did want to I feel like I haven’t this limited window to learn some stuff. Eight sometimes a knock on the like so one of the things about the customer base valuation is it, it’s a very bottom of the funnel monetizing the customer and therefore this is how valuable that acquisition channel was or how they both companies or whatever else and, the old-school CMOS I work with like when we start talking about those kinds of processes, they quickly go to yeah Jason but that doesn’t really capture my long-term brand Equity like I’m building this value that doesn’t show up in that number, and I’m imagining you you have to heard that before and debunk. Dan: [40:15] Yeah I love that question because in general and this is where I will get a little bit controversial again all the revenue has to come from customers making purchases and so if you believe in that, accounting identity which hopefully that’s completely uncontroversial then, then you have to kind of buy into the notion that it all comes down to acquisition retention ordering and spend and then variable profits and so so sick to kind of flip it back on on the old-school CFO yeah I’d say. If they’re spending on things that aren’t generating any measurable effect on those five Horsemen if CV CV, then it’s worthless completely worthless but to then give you know a little hat tip to the old school or I think what what they may be trying to say is that. I can make an investment today and I may not necessarily see the long term effect of that until three four years from now and that you know. That the long-term retention of those customers will be better because of the investment that I’m making. I think that’s a very important distinction because it’s saying that you can look at and just focus a hundred percent of your attention on the CB CB framework. It’s just an empirical question of how we can be able to measure its effects rather than saying you know actually we need to focus on brand Equity to. Jason: [41:44] Yeah and ironically like that cohort analysis is, is validating like when you know when it’s done well it’s validating the Investments made in that long-term brand Equity right because they they show up in like subsequent years value for those cohorts. Dan: [42:02] Exactly yep. Jason: [42:03] The Indian one more totally wonky one so so again old school seeing those like me and where should we put our marketing dollars and in particularly like that we all have this debate. What’s what should we be putting above the line IE what should we be spending to build brand Equity versus what you know should we be spending to drive actual activation. Things got and I talked about all the time like e-commerce and those sort of things and like historically like I mean from the 1970s, marketers use this media mix modeling which is pretty archaic and lately like as I work with all these ad agencies, the the academics that come up constantly are these guys and I’ve never met them less Bennett and Peter feel they’ve are you even Vaguely Familiar with him. They ever. Dan: [42:56] No you’re not. Jason: [42:58] Well then we’ll skip it but suffice it to say they did a quantitative analysis of a bunch of companies in found that in general the best like, mix of investment was 60% brand 40% activation and therefore there are a ton of like quite large. Marketing Enterprises with very large budgets that Loosely follow that parameter and it just seems, too simple to be true to me so I was just curious but I’ll let you take a pass on that and I’ll let Scott jump back in. Scot: [43:35] Yeah this is so just kind of apply this to an interesting argument so two of my favorite followers on Twitter are web he’s been on the show and then this guy digitally native I forget his name he’s in Austin, they’re constantly going back and forth over well first of all they really focus on the realm of digitally native vertical Brands so I don’t know if you’ve dug into that there and fortunately haven’t been a lot of, IPOs in there so there may be a lack of data on it but the kind of go in the circular argument I’ll try to do my best of kind of figuring it out so digitally native dude will say the one metric you should focus on as a digitally native or co-brand is gross margin and then now then web comes in and says Nope it’s got to be so first of all he doesn’t like it when companies raise Capital so it’s like it’s got to be bootstrapped and the only way to bootstrap it is cackle TV and then they then the kind of wheel spins around and goes back and forth back and forth do you have a point of view on that. Dan: [44:39] Yeah I kind of go back to to me the ultimate goal is customer base corporate valuation now I would say that does kind of lean more towards cackle TV, but I’m not sure that the distinction needs to be that you know that big because ultimately you know a higher gross margin is going to drive. Higher lifetime value all else being equal so certainly. But even their gross margin is not the only, component of variable margin yeah I think that if you really binds the notion that lifetime value is important well the profit margin that you use in that calculation should be the effect of The fully-loaded effective variable, profit margin and so you should be factoring in, this is going to be probably very common knowledge to you both but you things like fulfillment expenses and merchant processing fees which often times they’re not included in cost of goods sold they’re included in. In an operating expenses, so we want to put those in as well but I’d also include effectively variable indirect expenses to so even things like. This is going to sound totally brutal and conservative but even things like accounting expense. [46:01] New companies as they grow they need to hire more accountants and even companies like Microsoft spend ten percent of their sales. On expenses like that and so so what I want is I want that lifetime value figure to represent. If it’s positive that means there’s a path to profitability and if it’s negative there is not a pilot at the profitability and you won’t get that if you’re using gross margin as your margin. So Scot: [46:29] So then so tactically how do I allocate that like I just divide by the number of customers acquired over that period and all my costs and that period. Dan: [46:38] Yeah there’s a few different ways you could do it yeah let’s say the kludgy is simplest way would be take all of the expenses that are not direct expenses. And in regress them against sales, and with that can help you get a sense for is the relationship between those expenses and how they grow as you Revenue grows obviously if you’re inside the company though oftentimes companies especially if they’re young, they’ll kind of pre build and so you may see operating expenses grow quickly then but it’s not because those expenses are variable they’re just kind of building for the future so that’s really where I think if, if you’re an inside operator you have a much better view of that, as an outsider I think conservatively most any company can simply at least at the very start just knock off five percent of sales and just say, you know probably at least that much is going to be effectively variable indirect expense and. And then just you know kind of continue to run the analysis is you may otherwise have done. Scot: [47:47] Got it so sokak is easy to get your head around and then LTV you’re essentially saying LTV should almost be like cash flow. Dan: [47:54] High LTV should be the net present value of all the future variable profits after a customer’s acquired yeah so yeah as having to kind of peel that one back but I know. Scot: [48:08] I don’t think anyone’s calculating it that way that’s why it’s funny. Jason: [48:11] This this is why I like Theta is b or zodiac is because they do it for you they provide the mathematical. Dan: [48:19] And will you know we’re totally an open book you know will show you the academic papers so hopefully I’ve been kind of by into exactly how we’re going about the you know the calculations that were going about but, yeah I mean at some point I think the math it’s a very hard prediction problem yes a to be able to have someone. We’ve now done probably 250 different you know paid engagements on behalf of 250 different firms. So you kind of develop that dirt under the fingernails that could be hard if you’re just a really smart operator who’s building a business and don’t don’t even have the budget necessarily for you know much or any data science team. Scot: [49:02] Yeah I’m a big study of Amazon if you haven’t figured that out yet and it’s always funny because, people always ask Jeff Bezos these things he always comes back to cash flow and I almost wonder if he kind of like intuitively got to a similar place where you have where you know one of his answers will be customers you know I can’t take a gross margin to the bank you know I can’t take fifty percent to the bank when in the early days when people accused him of being a super low margin business and or like with Amazon Prime they thought he was crazy and I think he was thinking I think he was way ahead of the thinking here, what do you think about do you agree with that. Dan: [49:46] Yeah I think a lot of people they’ll look at these highly free cash flow negative digital companies often times, and I’ll say well you know yeah but but Amazon and if you look back carefully at Amazon, typically those comparisons are very bad you know that I think it was in the Amazon second year you know maybe it’s there that it was operating cash flow positive and, it’s the even the even though it took them a while longer to become Gap profitable. Who cares about Gap if you’re bringing in the cash flow you know that that’s ultimately what what drives the value of the firm and keeps the lights on so, so I think they did a lot of things right that are still under appreciated and have still led to a lot of confusion with this emerging crop of, fast-growing money-losing companies. Scot: [50:42] That one random observation is you so I think you said in your bio you were at like a hedge fund doing analysis of things but Jeff Bezos was to write wasn’t that where you kind of started is there is there something that you think cut came out of that where you both kind of saw this this kind of light bulb moment that you know this is the ultimate metric for for these kind of businesses. Dan: [51:05] You know that I think it was a de Shaw and I forget what role he he was at the firm butt, I would say there is something that actually this goes back to zodiac Theta, Finance people we’ve often done in the questions that you find the comparison yet selling to a marketing person versus selling to a finance person and I’ll often say selling to the finance person is easier actually, even though you’re presenting them with this Mark ostensibly marketing way of looking at the world ultimately its Net Present Value, and they just live and breathe that you know they’ve been doing that for probably since they were an undergrad you know whereas marketing people sometimes have sometimes happen. And it’s to a finance person I think they will get a lot of this and they’ll immediately see the analogy to project finance that project financing the you spend money on a project you’ve got this, you know you think about payback periods you think about the net present value of the project you think about the internal rate of return, that’s just how they think about their project and so if you just replace project with customer Suddenly It’s like a light bulb goes off and they say oh you know that that totally makes sense the customer is my project. Yes I think that to them this is all quite natural, to marketing people there could be more of an education that that’s required to kind of get them where they need to be. Jason: [52:31] I will totally buy that I do have to point out early in the show I complimented you on monetizing your academic background but now that Scott’s comparing you to Jeff Bezos you probably have a little ground to make up. Dan: [52:43] Definitely a loser there to him. Scot: [52:47] Jason builds you up I tear you down it’s part of its are good cop bad company. Jason: [52:52] Pivoting a little bit I’m curious like if you so a bunch of the company is in our space we talk about all the time, and you know where there is some debate about how sound the unit economics are we talk a lot about companies like Shopify and, Peloton and chewy why do you like look any of those companies do any of them provide enough data that you kind of formed an opinion. Dan: [53:21] Yeah actually all three I haven’t done a formal customer base corporate valuation of Shopify but I’d love to and, and they’re actually one of the firm’s where I’ve seen a customer cohort chart outside of the s-1 filing and as you can imagine. As you were alluding to Scott when companies disclose these things it’s probably because it looks good and and I definitely was the case with Shopify that there there C3 looks amazing, and in there an interesting case because you know they’re kind of a business in a box whatever the, terminology is now they’ll have a lot of companies that, yeah they go kaput they go out of business but they get so much incremental business from those who survived that they see very strong Revenue retention over time. So you know I haven’t I’ll be the first to say I haven’t been out the math is to say what their marketing Roi is but but it must be quite good. Jason: [54:31] You know I don’t know how like how close you father but like their CAC is actually quite low so that helps too. Scot: [54:38] I don’t think they do any marketing that’s another thing that they’ve always said that they let the product do the marketing and yeah. Dan: [54:44] Yeah so even better you know it’s really it’s it so I think you then it does become a question of valuation but even the valuation question you become some really hard I was actually just tweeting about this a couple days ago that. If you have very strong Revenue retention presumably you’re earning a very high return on your marketing investment and, and is a very strong analogy between marketing Roi and the return on invest the marginal return on invested Capital to business. So for business like Shopify I be astounded if their marginal return on investment wasn’t, at least an order of magnitude higher than their weighted average cost of capital like the required rate of return that investors demand of them to supply them with the capital that they have. And in theory if you are if your return on invested capital, is permanently above your whack there’s no you would deserve an infinite valuation. Scot: [55:51] I think they’re getting there. Dan: [55:52] Yeah it’s so so I’ll be the first to say that but I would say for Shopify there is a valuation question that we all know mean reversion is is a reality and so when, you know when those economic start to kind of go back to levels that are more in line with competition. You know that is that on that out and so I think that’s kind of the open question there so yeah valuation it’s. It’s not purely a function of current period clv you know I wish it was that easy but but it’s not. Jason: [56:33] It was super easy everyone would be doing it so where would the fun in that be. Have you up to Peloton at all maybe free covid or assume post covid there now like the next trillion dollar. Dan: [56:47] Yes I again yeah I’m kind of an s-1 geek like you both so when they drop the S one I looked at that one really carefully and especially because there was a lot of controversy I know if you are following this the time, that that their churn rate was just about to spike and, and they were timing the IPO it just at the point where a whole bunch of these, prepaid you know customers are locked in for two three years boom you know now they IPL all those things are going to move to month-to-month contracts and a whole bunch of people are going to turn in there you know. Average turn rates going to quadruple or even more and. [57:32] Yes I felt obligated to kind of jump in to see what the heck was going on and it’s I posted this analysis on LinkedIn hints and fully transparent not even provided the spreadsheet showing all of the calculations just so that people could, see or point out if I’m wrong and, in the main conclusion that I came to was now you know they’re their turn seems pretty low and there’s no Smoking Gun it should probably stay low and. And I would say even pre covid thankfully that seem to Bear out as being true. So we didn’t go all the way to I didn’t go all the way to valuation but it certainly you have I’d run like hardcore statistical models on them. Jason: [58:18] Gotcha and then I’m assuming about 400 billion dollars in value transferred from Jim’s to them as a result of the shelter in place orders. Dan: [58:26] Yeah they definitely benefited so. Scot: [58:28] It’s just a bike with an iPad strapped to it who would have thought. Dan: [58:32] Yeah there’s still it’s amazing in this thing again it goes back to Blue Apron there they’re always the haters. And and for Peloton there was still a whole bunch of people who argued that you know because of the economic contraction unemployment 15%. Is this super expensive bike are people that are pay two thousand three hundred bucks for a bike you know. And in that has I was on the opposite side of that trade yeah I was openly in webinar saying. Don’t be surprised at how many how many wealthy people are retaining their jobs and buying peloton’s now and and yeah it seems like that that’s that’s played out as well. Jason: [59:18] Oh yeah and and now they all those wealthy people have the capex invested in that bike and they’re presumably less likely to renew their gym membership when they’re able. Dan: [59:29] Yeah yep and I think that’s one of the arguments for why why their turn should remain generally quite low you know is that people are paying $2,300 for a bike, you know are they willing to Pony up the 30 bucks or whatever it is a month for the you know for the subscription. Definitely you know they’ve huge sunk cost fallacy but you know still people fall for that that’s the oldest trick in the book. Jason: [59:58] Yeah yeah I think that’s going to be our next podcast is all about those cognitive biases so that’ll be a perfect transition there and then chewy have you acted chewy at all. Dan: [1:00:08] I have not looked at you we personally so I have it’s been nice to see they’re now more and more people are kind of doing their own cbcb analyses and so there was one super smart person who had. Done some interesting analysis on them it ended up his conclusion was bearish that. Things did not look good and I also I do agree that the way that they Define the proportion of people who are unlike auto-ship or whatever they call that program is is is very aggressive but. But I actually I haven’t done a CBC analysis. Jason: [1:00:48] Okay mildly interesting like they had their their first earnings call Post. Covid and you know of course reminder like, their revenue growth has been wildly awesome and they’re one of the few direct to Consumer companies that you know his vastly exceeded a billion dollars in sales they’re really struggling to be profitable, the covid quarter was their first quarter where they had a profitable ibadah but earnings was still negative but which is why I was curious if you see, like you know are they just on this Wayfarer style treadmill where they can never make money or or you know is there a model where they scale out of that but one of the things that was interesting they mentioned is, me and 1.6 million new pet owners adopted a pet in covid and we think the covid cohort for us is worth 90 million dollars this quarter like I just that was it like it wasn’t so much I mean it was, they were they didn’t provide data but they had a narrative around an acquisition based cohort in there there. Dan: [1:01:54] Wow yeah I was about to say that they’re going to argue with all the pets parts of the world shut down that all that business is now increasingly going to the chewy but. Jason: [1:02:05] Yeah well I think there’s some there is some data there right like pre covid 22% of, of pet spending was e-commerce and you know in covid it’s like 35% so like all those new pet owners who I clearly you know were born digital, you know suppliers for their pet food and all that stuff. Dan: [1:02:25] Yeah that’s like a free gift that covid has given to these companies. Jason: [1:02:28] Oh my gosh yeah there’s a lot of free gifts and a lot of free I don’t know what the right. Dan: [1:02:34] Fold in the air colder in the star. Jason: [1:02:36] Yeah exactly that have been like disproportionately handed out its kind of kind of brutal with the winners and losers. Dan: [1:02:44] Not just disproportionate but in some sense random, is that a lot of otherwise great companies and you know just so happens well you were a mobile gaming company so you will be a winner you were you were an underwear Stellar you will be a loser but you. Jason: [1:03:01] Except if your underwear seller that also sells lettuce in which case you’re you’re a winner. Like that those are the weird distinctions right like. Dan: [1:03:10] Yeah the milk is to go back to Blue Apron. Jason: [1:03:14] Yeah I feel like I saw you on one of the new shows talking about Wayfarer and covid did you like you want to recap your your thought process there. Dan: [1:03:25] Yeah yes it’s obviously I’ve been falling Wayfarer for a while now and, you know I’ve been probably as much press on them as with blue apron and. And they had first finally it was as if the writing was finally on the wall they said they. The CEO had even said we were growing too quickly and we’re going to now lay off a bunch of people and move to more you know sustainable growth. [1:03:54] And then covid and basically you know I was speaking with someone from CNBC it’s ended up being featured in her article but it’s something like 86 percent of all home good sales, had been brick and mortar and so suddenly covid you shut all that down and you know this little slice you know the other 14%. Sunny they’re the only game in town and not only that. Wayfarers biggest competitor with in HomeGoods had been Amazon and Amazon now is prioritizing essential Goods so there are not focusing a lot on HomeGoods. So they’re not only kind of the only game in town when you compare them to the brick-and-mortar players but they’re also one of the only games in town even on online so so they’ve seen their growth go from something like. 20% or 25% to 90% And presumably that’s all, I would imagine it’s quite profitable growth that there’s just a lot of people now who are organically coming to Wayfair and making the purchases are because they they want that new chair to put in their work from home office, so yes they really they benefited on all sides from from covid which you know hats off to them I’m happy that it’s been. It’s been good for them. Jason: [1:05:20] Yeah it’s going to be in a mean I obviously we all wish all these companies the best it’s going to be interesting like, hey they’ve got to be able to be get profitable on that on that revenue or like certainly it’s going to be scary and hopefully they can they can leverage all those new customers into a long-term viable. Dan: [1:05:38] I think the long game is the big question that I have and still to me now it’s just an open question I feel like you thankfully. Yeah I feel like our thesis was validated the stock actually fell to within our valuation range before you know things went crazy with covid so I feel like I don’t have a whole lot of skin in the game right now, but I do still wonder those stores will eventually come back online some of them are closed permanently like Pier One is not a company called Tuesday they are liquidating you know so so that Supply is not coming back on the market but, you know we will still see a lot of you know home goods stores reopening and then Amazon is going to reprioritize furniture and so, I think there is a question of how much of the growth that we’re seeing Wayfarer how much if it’s going to stick. And how much of it will go back to what we had seen before. Yeah I kind of think it’s a question of how severe covid it’s going to be yeah they did a certain variables that I just don’t have a good sense for right now but I think that that will be a big part of the valuation story. Jason: [1:06:46] No I think you’re right like I you know it’s going to be interesting because I feel like a lot more competition than we realize right now is going to go away like of the traditional competition because. There’s a bunch of Independence that you know have become insolvent and we just don’t hear about them but I mean aggregate their 25% of the furniture market there’s a lot of regional chains that. You know just haven’t bothered to file bankruptcy yet because they can’t run a liquidation sale right now it’s kind of hard to declare bankruptcy at the moment so that’s going to happen but then for your point, Amazon and you know the most healthy well resource of the surviving retailers as you know are all going to want to grab that share nobody’s going to want to just advocated. The Wayfarer so it’s going to be a, interesting battle to watch play out but Dan that’s going to have to be a good place to leave it because we have slightly exceeded our allotted time but we were enjoying our conversation so much that. You thought it was well worth it so we really appreciate you taking the time and really enjoy the. Dan: [1:07:47] Yeah thanks thanks again so much for thinking of me and having me on the show this is this is a stuff I stay up to talk about this to anyone who’ll listen so so so thank you it’s been a lot of fun for me too. Scot: [1:07:59] Thanks and we really appreciate it and I think you know my goal is to learn a couple things everyday I think I’ve filled up at least the rest of the month and maybe July so really appreciate it. Dan: [1:08:11] Being too kind but thank you. Jason: [1:08:12] And until next time happy commercing.

Business Finance, FIL 240-004, Spring 2020, Lecture 24 Internal Rate of Return and Net Present Value, delivered on April 22, 2020 Run time: 0:58:54 Type: mp3 audio file

In this episode we cover the difference between two often misunderstood common terms. Equity Multiple Ratio used to determine total cash return over the life of the investment (Total Profit + Equity Invested) / Equity Invested Internal Rate of Return Discount rate such that the Net Present Value of All cash flows equals zero Need to use excel (google it and watch it on YouTube) What it means in English is it is a measure of expected returns annualized over time. Think of this as the rate of growth you would expect over time from a project How much interest would a bank account have to pay given you cash flows to produce same overall return? How they are different. Equity multiple shows total return of cash over time. IRR shows total return on cash over time   See the video

We're in the weeds here. But we have to play around here for a bit to understand some bigger concepts of ROI and IRR. And why IRR is the better choice when assessing a potential investment. The key to this is found in the NPV. The ROI doesn't solve for the NPV. The IRR does. Meaning, time matters when considering returns.——————————Sealevel InsightsJosh Rosenthal, founderDSB Podcast - dsb.today/podcastDSB Videos - dsb.today/youtubeSealevelinsights.com This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit joshrosenthal.substack.com

This week Nathaniel Spiers interviews me about my own testimony of a real estate investment that was profitable beyond any reasonable expectation I had. Even more, it's a perfect example of the power of celebrating other people's wins and speaking forth their testimonies to manifest another testimony. 2 weeks ago I interviewed my roommate Ryan Wall on a recent breakthrough he had experienced. One of the declarations we made on that show was that people would hear his testimony and it would result in their own. Little did I know that would be me! Just today I signed a contract for the sale of my investment property that had 6 offers within 72 hours, at or above asking price! The offer I signed is for a full-price, all-cash offer. Without using debt of any kind, below are the returns I'm expecting in a few weeks based on the offer price (after subtracting all fees and taxes): Internal Rate of Return (IRR) of 25% Net Present Value of almost $70,000 Total two-year holding period return of 55% 2500 times greater return on my money than I previously had in my savings account! Please check out Nathaniel's ministry at https://nathanielspiers.com/ If you like what you hear leave a review on iTunes, Stitcher, or TuneIn, and feel free to drop us a line at https://abetterwaypodcast.com

Managerial Accounting Payback Period, Accounting Rate of Return, Net Present Value, Internal Rate of Return --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app

Calculate what future income is worth today by applying a discount to its future value. • Figure out what future income is worth today by applying a discount rate 0:00 Transcript: http://nav.al/npv

Podcast Notes Key Takeaways NPV = Net present value NPV answers the question – “That stream of payments I’m going to get in the future—what’s it worth today?”An example:You’re joining a startup and get 0.1% equity as part of your offerThe founder claims the company will one day be worth ~$1 billion, equating your 0.1% to $1 million worth of future valyeBUT – you have to figure out what it’s ACTUALLY worth (after accounting for the massive risk startups face)So, if the founder just raised a $10 million round, your 0.1% is really only worth $10,000 todayGet very comfortable doing net present value calculations in your headRead the full notes @ podcastnotes.orgCalculate what future income is worth today by applying a discount to its future value. • Figure out what future income is worth today by applying a discount rate 0:00 Transcript: http://nav.al/npv

Looking for Opportunity Zone Real Estate Investments? Check out the new Opportunity Zone Deal of the Week.  Every week Jimmy (from OpportunityDB) and I will feature a new OZ property of the week.  These are pre-vetted deals ready for investment. This weeks deal is a huge value! For under $1M.... 156,000 sf redevelopment opportunity in PA with seven buildings and three tax lots. Only three hours from New York City, Philadelphia, Baltimore and Washington, D.C . Learn more at www.opportunity.properties  You can also submit your opportunity zone property or real estate investment project as well. _________ Net Present Value is a show dedicated to making the world a better place through thoughtful impact investments. Hosted by TMO (aka Thomas Morgan).  TMO has been involved with well over $1B of investment real estate in almost 40 states and is using that experience to create a more positive beautiful world while providing triple bottom line returns for like minded investors.  Our investments produce true COMPOUND returns: Impact, Income, Return.  Make your contribution to the show by leaving a message at 970-300-1994 or https://compound.global/talk     Of course.... disclaimer, this is not investment advice; seek professional help as needed.  

Looking for Opportunity Zone Real Estate Investments? Check out the new Opportunity Zone Deal of the Week.  Every week Jimmy (from OpportunityDB) and I will feature a new OZ property of the week.  These are pre-vetted deals ready for investment. This weeks deal is a huge value! For under $1M.... 156,000 sf redevelopment opportunity in PA with seven buildings and three tax lots. Only three hours from New York City, Philadelphia, Baltimore and Washington, D.C . Learn more at www.opportunity.properties  You can also submit your opportunity zone property or real estate investment project as well. _________ Net Present Value is a show dedicated to making the world a better place through thoughtful impact investments. Hosted by TMO (aka Thomas Morgan).  TMO has been involved with well over $1B of investment real estate in almost 40 states and is using that experience to create a more positive beautiful world while providing triple bottom line returns for like minded investors.  Our investments produce true COMPOUND returns: Impact, Income, Return.  Make your contribution to the show by leaving a message at 970-300-1994 or https://compound.global/talk     Of course.... disclaimer, this is not investment advice; seek professional help as needed.  

2020 election forecasters would do well to look to California as an early indicator of how the Democratic Party might position itself to compete with President Trump's popular style. As the saying goes, “As California goes, so goes the nation.”In areas from the environment to immigration, [California has tried its unique left-coast spin on Federalism](https://medium.com/@rzadek/california-discovers-federalism-d299f11d623) — bucking national standards in favor of its own progressive exemptions. Our vehicle emission standards have shaped the national debate, and the ambitious high speed rail bill is emblematic of California's can-do spirit when it comes to tackling greenhouse gas emissions.Governor Gavin Newsom says there's “no way” he's running for President in 2020—he has a job to do for at least 4 years—but the agenda he laid out in his recent State of the State address reflects the likely priorities of the pool of Democratic contenders. It was boldly progressive, pitting “California Values” against the President's vision of America. Yet compared to the extremism of Alexandra Ocasio-Cortez's “Green New Deal,” Newsom's environmental agenda looks conservative.[Marc Joffe, a senior policy analyst for the Reason Foundation,](https://reason.org/author/marc-joffe/) did the rest of us a favor by tuning in to the Governor's address last week, and recently [wrote a piece](https://reason.org/commentary/new-governor-scales-back-california-high-speed-rail/) dealing with a surprisingly pragmatic plank of Newsom's agenda. Whereas former Governor Brown hoped the bullet train from LA to SF would be his legacy and didn't budge in the face of harsh economic realities, Newsom is confronting the possibility of a lack of funds to complete the project. He used his speech to signal his plans to limit costs by truncating the proposed line south of Bakersfield and west of Merced:> “Let's level about high-speed rail. The current project, as planned, would cost too much and, respectfully, take too long.” — Gavin Newsom in his first State of the State address> It looks like the classic parable* of the builder who failed to take stock of his inventory before beginning a project, and finds himself short before it's finished. In this case, California may still be able to cut its losses before incurring the most expensive sections of the rail, although the sunk costs include the construction of the now-overkill “Transbay Terminal” that was supposed to serve as the terminus in San Francisco. Joffe notes that the $2.2 billion station will now amount to little more than an enormous bus stop.This cautionary tale can come in handy whenever progressives begin lecturing on sustainability. It is even more relevant to the conversation around the Green New Deal, which promises nation-wide high speed rail as a substitute for vehicles and airplanes. **[Marc will join the show's producer Charlie Deist this Sunday to debunk “AOC's” daringly bad legislative proposal before it picks up steam in the popular imagination.](http://bobzadek.com/listen-live)**Moderates in the Democratic Party would be wise to read up on the cold, hard experience of HSR in California, which demonstrates why centrally-planned mega-projects are a bad way to combat greenhouse gas emissions. Marc summarized the main reasons in a recent article:> In a 2010 UC Berkeley study, Professors Mikhail Chester and Arpad Horvath estimated that the entire California high-speed rail project would generate 9.7 million metric tons of carbon dioxide during construction.> > Chester and Horvath estimated that it would take high-speed rail 71 years of operation at medium occupancy to offset its own construction-related greenhouse-gas emissions. Given the project's delays and carbon reductions being achieved by new technology, like electric vehicles, it is possible that, if built, the rail system will never pay back the carbon investment required to build it.> **[Opinion: California overstates bullet train climate benefits***While delays, cost overruns and an adverse state audit have fueled opposition to California's high-speed rail project…*www.eastbaytimes.com](https://www.eastbaytimes.com/2019/02/07/opinion-california-overstates-bullet-train-climate-benefits/)Such figures raise the specter that a Green New Deal, which invests massively in the present to offset future carbon emissions, will merely accelerate the warming effects of industrial capitalism (if you buy into that premise).Marc and Charlie explore the “Net Present Value” calculations necessary for a full accounting of costs and benefits of various green technologies.

Feb.21st Class – Net Present Value – In this class we are going to look at the idea of using Net Present Value to make capital budgeting decisions.

This episode is the third in a series on Corporate Finance. This episode focuses on Net Present Value NPV. Net Present Value is the gold standard of corporate finance analytic tools. NPV is the main tool used to value assets and make decisions about projects, purchases, mergers, or acquisitions. Its how savvy financial professionals make decisions about how, when, and where to invest money. --- Support this podcast: https://anchor.fm/mba-asap-podcast/support

Land Academy Members Rowdy & Kyria Baker (CFFL 429) Jack Butala:                       Jack Butala with Jill DeWit Jill DeWit:                           Hi Jack Butala:                       Welcome to our show today. In this episode, we talk with Land Investor Members, Rowdy and Kyria Baker. Jill DeWit:                           Yay Jack Butala:                       Before we get into it. Sometimes I do that cause I just want to see what you are going to do. Jill DeWit:                           I just waited, like one one-thousand, two one-thousand [crosstalk 00:00:21] Jack Butala:                       Before we get into the interview, let's take a question posted by one of our members on landinvestors.com online community. It's free. Jill DeWit:                           Okay. Kathleen asks, I've seen this before NPV. Okay, my non-accounting brains says, what the heck is this and how is it calculated? I get the basics. It's the difference between the cash-in flow and a cash-out flows. But how can I apply this? This is so good. When pricing parcels for terms deals? All right, so somebody already weighed in here. Scott. Todd. Jack Butala:                       Todd, this is a direct. Everybody loves Kathleen. She has a PhD in psychology. Jill DeWit:                           I know Jack Butala:                       NPV is Net Present Value. All right? Jill DeWit:                           Okay Jack Butala:                       This is near and dear to my heart cause that's why were all here. Jill DeWit:                           Exactly. Jack Butala:                       We're all here to make money. Jill DeWit:                           Right Jack Butala:                       We're not here cause it's cool to build land. I mean it is cool to build land. Jill DeWit:                           Right. Jack Butala:                       We're really here to make some money. So, go ahead Jill. Jill DeWit:                           Okay. This is going to be a long, brainy answer. Jack Butala:                       Yes, it is. Jill DeWit:                           I just want to warn everyone here. As a land investor. Jack Butala:                       Cause it's important. Jill DeWit:                           This shows going to be like an hour long. Jack Butala:                       No, it's not. Jill DeWit:                           Yes, it is. All right. Jack Butala:                       Actually, it is. Jill DeWit:                           So, here's one answer by a member. As a land investor, you are probably very interested in large parcels of land. There is something very exciting about buying a 40, 80 or 160 acre parcel of land. It's land investing version of big game hunting. But, bagging that large parcel is not always a great deal, let me show you why. Jack Butala:                       Ding, ding. Jill DeWit:                           [crosstalk 00:01:57] interesting. Jack Butala:                       I love this. [crosstalk 00:01:59] I know it's lengthy, but it matters. Jill DeWit:                           First, we are going to have to break out our financial calculators. If you don't have one, I suggest an online version. Before you break out into a sweat, understand we are only going to be using a few keys. Jack Butala:                       And, it's the term of the sale. How many months? How many years? I is the interest. They call it a yield but it's really interesting. PV, present value. This is the present value, in fact, where you enter the investment, the amount paid minus a down payment. And PMT is payment, monthly payment. Here's an example, I purchased a 40-acre property for three-thousand bucks. That sounds great. When I sold the property, it was $500 down and $200 a month for 72 months. Now, let's see what the yield is. What were really, if you're bored by this,

Land Academy Members Rowdy & Kyria Baker (CFFL 429) Jack Butala:                       Jack Butala with Jill DeWit Jill DeWit:                           Hi Jack Butala:                       Welcome to our show today. In this episode, we talk with Land Investor Members, Rowdy and Kyria Baker. Jill DeWit:                           Yay Jack Butala:                       Before we get into it. Sometimes I do that cause I just want to see what you are going to do. Jill DeWit:                           I just waited, like one one-thousand, two one-thousand [crosstalk 00:00:21] Jack Butala:                       Before we get into the interview, let's take a question posted by one of our members on landinvestors.com online community. It's free. Jill DeWit:                           Okay. Kathleen asks, I've seen this before NPV. Okay, my non-accounting brains says, what the heck is this and how is it calculated? I get the basics. It's the difference between the cash-in flow and a cash-out flows. But how can I apply this? This is so good. When pricing parcels for terms deals? All right, so somebody already weighed in here. Scott. Todd. Jack Butala:                       Todd, this is a direct. Everybody loves Kathleen. She has a PhD in psychology. Jill DeWit:                           I know Jack Butala:                       NPV is Net Present Value. All right? Jill DeWit:                           Okay Jack Butala:                       This is near and dear to my heart cause that's why were all here. Jill DeWit:                           Exactly. Jack Butala:                       We're all here to make money. Jill DeWit:                           Right Jack Butala:                       We're not here cause it's cool to build land. I mean it is cool to build land. Jill DeWit:                           Right. Jack Butala:                       We're really here to make some money. So, go ahead Jill. Jill DeWit:                           Okay. This is going to be a long, brainy answer. Jack Butala:                       Yes, it is. Jill DeWit:                           I just want to warn everyone here. As a land investor. Jack Butala:                       Cause it's important. Jill DeWit:                           This shows going to be like an hour long. Jack Butala:                       No, it's not. Jill DeWit:                           Yes, it is. All right. Jack Butala:                       Actually, it is. Jill DeWit:                           So, here's one answer by a member. As a land investor, you are probably very interested in large parcels of land. There is something very exciting about buying a 40, 80 or 160 acre parcel of land. It's land investing version of big game hunting. But, bagging that large parcel is not always a great deal, let me show you why. Jack Butala:                       Ding, ding. Jill DeWit:                           [crosstalk 00:01:57] interesting. Jack Butala:                       I love this. [crosstalk 00:01:59] I know it's lengthy, but it matters. Jill DeWit:                           First, we are going to have to break out our financial calculators. If you don't have one, I suggest an online version. Before you break out into a sweat, understand we are only going to be using a few keys. Jack Butala:                       And, it's the term of the sale. How many months? How many years? I is the interest. They call it a yield but it's really interesting. PV, present value. This is the present value, in fact, where you enter the investment, the amount paid minus a down payment. And PMT is payment, monthly payment. Here's an example, I purchased a 40-acre property for three-thousand bucks. That sounds great. When I sold the property, it was $500 down and $200 a month for 72 months. Now, let's see what the yield is. What were really, if you're bored by this,

In the first part of this multi-part series, host of TheMacroView and Chartered Alternative Investment Analyst discuss the foundations of investment valuation. Herein, he covers Present and Future Values, The Discount Rate, Discounted Cash Flow Analysis, Net Present Value, the Internal Rate of Return and the issues with the IRR, as well as the Modified IRR. For anyone that is interested in financial markets, the stock market, real estate investing, entrepreneurship or any other activity that involves judging the soundness of a decision to payout money now, defer consumption, in the hopes of reaping future rewards, this is a Episode should NOT BE MISSED!

Capital investments in long term assets like fixed assets, equipment, and building need to be analyzed on more detail using tools like the payback period, accounting rate of return, net present value, and internal rate of return. The post 2500.1 Payback Period, Accounting Rate Of Return, Net Present Value, Internal Rate Of Return appeared first on Accounting Instruction, Help, & How To (Financial & Managerial).

Closed Captioned

In this podcast is about explains the different types of investment appraisal that can be done to calculate the viability of projects. The techniques examined are Payback, Net Present Value (NPV) and Internal Rate of Return (IRR). More importantly in this podcast we discuss why project managers should be interested in these calculations and the impact a project can have on the economic viability of a project. The longer it takes and the more it costs the more difficult it is the justify the funding. The APMP assessment criteria covered in this podcast include 110.4 explain the use of payback, Internal Rate of Return and Net Present Value as investment appraisal techniques. The examination questions will not require calculations to be performed This podcast is just part of the parallel learning system for the APM Project Management qualification (APMP). This approach includes a wide range of learning resources included a printed study guide, on-line e-learning, a tutor lead study group and a wide range of project management courses

Issues to be aware of when using net present value analysis

A brief introduction to Net Present Value and the Internal Rate of Return