CF 2

Cash flow happens AFTER the reference point

bring it BACK → PV

Cash flow happens BEFORE the reference point

push it FORWARD → FV

Is it ONE single amount?

use the plain IF version (PVIF / FVIF)

Is it a REPEATING equal amount?

use the annuity version (PVAN / FVAN)

To find amount for after age 60

PVAN

To find before age 60

FVAN

First payment happens right at the start (no waiting a year

add "D" (AND/FVAND) — multiply by (1+i)

what is IRR (internal rate of return)

IRR is the discount rate that makes a project's NPV exactly equal to zero.

What is NPV (Net present value)

how much extra wealth (in today's money) does this project create, after accounting for what it costs?

NPV ≥ 0 → Accept (creates value)

NPV < 0 → Reject (destroys value)

NINV = Net Investment

NINV is: the total amount of cash that actually leaves your pocket, right at the start (time 0), to get a project up and running.