NPV is essential to corporate budgeting. Excel can find the internal rate of return (IRR) and use that as the discount rate for an NPV of zero. Let’s begin by examining each step of NPV in order.

such as payback period and net present value (NPV). You can also use CAGR, but IRR will be a better representation of an investment's performance. How is IRR calculated? The IRR formula is complex ...