NPV vs. PV Formula in Excel While you can calculate PV in Excel, you can also calculate net present value (NPV) . Present value is discounted future cash flows.

Net present value (NPV) is used to estimate the profitability of projects or investments. You can calculate NPV in two ways using Microsoft Excel.

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's discounted cash flows, minus expenditures ...

Now that your input area is finished you can use the information to calculate the issue price of the bond using the NPV function in Excel. From your NPV cell (B14) begin by clicking on the fx button ...