Although it is possible to calculate NPV with conventional mathematical functions, Excel has a dedicated function to calculate NPV. The following article explains how to use this function in the ...

The project will break even and have an NPV of zero if the cost of capital equals the return of capital. The Excel formula for calculating the discount rate is =RATE (nper, pmt, pv, [fv], [type ...

The next time you cover this topic, consider teaching students how to calculate the issue price by using the net present value function (NPV) in Excel. Here’s an example: Suppose a company issues a $1 ...

Calculating the present value of a series of unequal payments In many situations, a client might have periodic but unequal payments. If payments are not equal, the PV function in Excel cannot be used ...

There are two formulas you might use to calculate net present value. The one that you choose can depend on the number of cash flows the investment has. If you’re calculating NPV for a project ...

It's a core component of corporate budgeting. Most analysts use Excel to calculate NPV. You can input the present value formula, apply it to each year's cash flows, and then add together each year ...