Net Present Value

Net Present Value is a topic that students often find challenging. This presentation has been produced so that students of all abilities can access the topic. Using lots of colour and engaging slides, contextualised examples as well as step by step examples, this presentation has proven to be very successful in getting my students to understand this net present value effectively.

Included in this presentation:

A detailed title slide including key skills covered in the lesson and equipment required
Initial starter activity where students need to calculate the payback period and average (accounting) rate of return. The aim of this activity is to get students to think about how using both of these methods can provide conflicting results (one investment option could have a shorter payback period where the other could have a higher average rate of return). Activity and answers included in slide, as well as explanation of how these figures were calculated.
Step by step guidance as to what the net present value and time value of money means (we look at why it is better to have £100 now rather than next year)
Activities that explain what inflation and interest rates are, and how they affect the value of money (guess the price activity can be done on mini whiteboards or completed as a class)
Step by step guide demonstrating how net present value is calculated
An explanation of how net present value can be applied to investment decisions
An evaluation of the usefulness of net present value, with examples provided.
This presentation contains 53 slides and took me just under 2 hours to go through in detail.