For example, if the firm purchases 10 percent of a company with a market capitalization of $500,000, then the value of the transaction is 0.10 x $500,000 = $50,000.

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.

Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

The process of calculating your tangible net worth involves listing all your tangible assets–real estate, vehicles, cash and investments like stocks and bonds–and their current value.

Even still, calculating the net asset value for a hedge fund should be relatively easy to do if you have access to the hedge fund 's financials.

Calculating net assets In order to calculate net assets as of the end of the accounting period, follow these steps. Add up all the inflows from donations and revenue that the charity generated.

Calculating net assets In order to calculate net assets as of the end of the accounting period, follow these steps. Add up all the inflows from donations and revenue that the charity generated.

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