Net Present Value
Net present value is used to calculate the present value of multiple future cash flows. NPV analysis takes all of the future cash flows and discounts them back to time 0
then compares them against the initial cost. NPV analysis can be us
Calculating Net Present Value in Excel
This worksheet demonstrates examples of using an Excel function to find the net present
value of an investment.
Net present value is calculated using a discount rate (which may represent an interest rate or