Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return.

How to Calculate Net Income in Managerial Accounting. Managerial accounting, a tool used for business decision-making, allows for different methods of calculating net income.

The net present value (NPV) method can be a very good way to analyze the profitability of an investment in a company, or a new project within a company.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.

What's the NPV? NPV stands for net present value, and it is an accounting calculation that every lender makes about each loan that is reviewed for a possible loan modification.

Source: Motley Fool In many cases, the difference between net sales and gross sales can be much more than an accounting detail.