Anything Math



01032017, 02:21 AM
(This post was last modified: 01032017 02:24 AM by Robvalue.)




RE: Anything Math
I have a website here which discusses the issues and terminology surrounding religion and atheism. It's hopefully user friendly to all. 

07032017, 10:26 PM




RE: Anything Math
(28022017 12:37 AM)Robvalue Wrote: I have a little challenge I made up Please put solutions in spoilers! Probably quite easy for those well versed in probability. I'll give the solution to this below, for anyone who is interested. I have a website here which discusses the issues and terminology surrounding religion and atheism. It's hopefully user friendly to all. 

07032017, 10:54 PM




RE: Anything Math
(07032017 10:26 PM)Robvalue Wrote:(28022017 12:37 AM)Robvalue Wrote: I have a little challenge I made up Please put solutions in spoilers! Probably quite easy for those well versed in probability. Just when I think I understand probability. “I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain “Ocean: A body of water occupying about twothirds of a world made for man  who has no gills.”~ Ambrose Bierce 

1 user Likes Full Circle's post 
25052017, 05:27 PM




RE: Anything Math
(26022017 01:45 PM)morondog Wrote:(22022017 12:28 AM)Full Circle Wrote: The IRR is the interest rate, also called the discount rate, that is required to bring the net present value (NPV) to zero. That is, the interest rate that would result in the present value of the capital investment, or cash outflow, being equal to the value of the total returns over time, or cash inflow. That is exactly right...the IRR equals exactly where NPV is 0. But its not that simple of a concept to someone just learning it. It can take a while to wrap your mind around it. Wikipedia actually has a good article on the matter. Their formula can help someone visualize how it works better. https://en.wikipedia.org/wiki/Internal_rate_of_return 

25052017, 05:31 PM
(This post was last modified: 26052017 07:18 AM by swimmyswammysamsonite.)




RE: Anything Math
Full Circle Wrote:
The IRR is the interest rate, also called the discount rate, that is required to bring the net present value (NPV) to zero. That is, the interest rate that would result in the present value of the capital investment, or cash outflow, being equal to the value of the total returns over time, or cash inflow. Its not a very easy concept to wrap your mind around. But it sure is cool when you finally "get it." 

26052017, 04:27 AM




RE: Anything Math
(25052017 05:31 PM)swimmyswammysamsonite Wrote: Full Circle Wrote:I have nothing to say on topic, just your username is utter gold. I don't want Fop, goddamn it! I'm a Dapper Dan man! 

1 user Likes OakTree500's post 
26052017, 07:03 AM




RE: Anything Math
I've learned all about this now. It's interesting! Here's my attempt to describe it off the top of my head.
The Net Present Value is what the whole project is worth right now, after scaling back expected future income/expenses. It's like doing the opposite of compound interest, to work out what amount of money now would be worth X amount in 10 years. The further things are in the future, the less they are worth now, because of all those years of interest you will have missed out on. If you expect your money in the business to be worth 10% more each year say, then you'd have to divide by 1.1 for each year it is in the future. (You multiply by 1.1 to add 10% for a year, so dividing by the same number would take you in the other direction. Don't make the common mistake of "taking 10% off" to go back, because this isn't the same thing. 90% of 110% is not 100%.) So the Internal Rate of Return is the rate of interest where, after scaling everything back to the present, you break even. If your money grows at that rate, the whole project would leave you no better or worse off. So it represents a baseline. If your interest rate is above that, then the project is expected to give a positive return. Below it, you expect to lose. Nonfinancial concerns aside, this means you want your interest rate to be a safe amount over the IRR to consider taking on the project. I have a website here which discusses the issues and terminology surrounding religion and atheism. It's hopefully user friendly to all. 



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