It's just a commonly used accounting... thingie. So I imagine it's been around for a long time.

What's so hard about NPV calculations, anyway? NPV and related functions are built into all spreadsheets and financial calculators. Is it comming up with the values you're gonna use in the NPV calculations?

Nah, it's not the concept, it's the application in IT project management that makes my eyes twitch. Doesn't stop me from wanting to raze the earth of its creators and perpetuators.

Actuaries use NPV constantly. It's one of the foundations of Actuarial Science (don't laugh).

What sorts of things can you calculate NPV for? For instance, could you calculate the appropriate price to pay if you were buying Britney Spears's future earnings today?

What about a rock; does it have an NPV of zero? (I'm talking a rock that you just picked up in the parking lot. Not asphalt or concrete, but a real rock.)

BT, Jon, I have some actuarial questions, as I am making the lead character in my new play an actuary. Would either of you mind if I emailed you with various general sorts of things?

BT, Jon, I have some actuarial questions, as I am making the lead character in my new play an actuary. Would either of you mind if I emailed you with various general sorts of things?

Make sure the character either plays Theremin or is an amateur zoologist. Bonus points for silver pleather.

Actuaries also like to make fun of accountants.

No, seriously. They tell accountant jokes.

This is the only accountant joke (told by an actuary) that I remember:

What's a computer? An accountant with a personality.

OK, accountant jokes aren't necessarily funny....

For instance, could you calculate the appropriate price to pay if you were buying Britney Spears's future earnings today?

Yes, as long as you're willing to make assumptions about what her future earnings payment stream will look like.

What about a rock; does it have an NPV of zero?

Generally, present values are calculated for things that have a stream of payments, or even a single lump sum payment, some time in the future. Unless the rock is farting diamonds, there's nothing to calculate.

Would either of you mind if I emailed you with various general sorts of things?

I'd be flattered Scrappy!

No, seriously. They tell accountant jokes.

The "classic" one is the self-deprecating, "An actuary is someone who didn't have the personality to be an accountant."

The "classic" one is the self-deprecating, "An actuary is someone who didn't have the personality to be an accountant."

I thought accountants told that one....