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, London

The transcript and downloadable versions of the lecture are available from the Gresham College website: https://www.gresham.ac.uk/watch-now/net-present-value

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