The result using the NPV function for the example comes to $722,169. Then subtract the initial outlay from the value obtained by the NPV function to compute the final NPV.

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

Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

This article provides example scenarios and explains various approaches for calculating the time value of money using Microsoft Excel. The Excel tools discussed herein include the FV, FVSCHEDULE, PV, ...

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 ...

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 ...

See the example of the PMT function calculating monthly payments in the image above. The XNPV function returns the net present value for a schedule of cash flow that is not necessarily periodic.

Excel has over 475 formulas in its Functions Library, but we've selected the most popular, from date and time functions to mathematics and simple data manipulation.

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 ...