Learn how to calculate the net present value (NPV) of your investment projects using Excel's XNPV function.

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 ...

Find the IRR in Excel by employing the IRR function, then use it as the discount rate that causes NPV to equal zero. Use What-If analysis, a built-in calculator in Excel, to solve for the discount ...

When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. Consider teaching students to calculate the issue price by using the net present ...

The PMT function is an Excel Financial function that returns the periodic payment for an annuity. The formula for the PMT function is PMT(rate,nper,pv, [fv], [type]). The NPV function returns the ...

As mentioned, net present value is not specific to investing in stocks or other securities. Businesses can also use net present value formulas to determine where to allocate their capital.

IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and ...

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