NPV
The net present value, simply known as NPV, refers to the current worth of future cash flow. By a future cash flow we mean the amount of money that you will get in future by making an investment now. Figure 1 Any competent employee of any financial institution must know...
We need the Excel XNPV function to calculate the net present value of a given investment with a given discount rate when the cash flows come at an irregular intervals. Here are pro tips on using the Excel XNPV function in excel to get the NPV given irregular cash flows...
While calculating the net present values, a time comes when we are faced with negative cash flows. In excel, we can still get the NPV even when we have the negative cash flows. In this article, we shall learn how to calculate NPV in excel with negative cash flows Figure...
While working with excel, a time comes when we are required to get the break-even analysis for the firm or organization we are working for. To do this, we need to use the goal seek method to solve it. Here is a how you can perform the NPV break even...
By now it should be easy to calculate the NPV in excel when given annual cash flows. But what if we want to calculate the same but with quarterly cash flows? This post will provide a step-by-step guide on how to calculate NPV with quarterly cash flows in excel. Figure...
When calculating the net present value, a situation might arise where you are face with a constant series of payments without an end. This is what we refer to as NPV for a perpetuity. To find the net present value of a perpetuity, we need to first know the future...
While working to find the NPV of a given data in an excel spreadsheet, excel takes annual assumptions. This might not always be the case, given that there are times when we calculate NPV based on a monthly cash flow. This calls for us to understand the difference between annual...
With the help of NPV function in excel, we can now determine the net present value of a given cash flow. This article provides a clear guide on how to use the NPV function when calculating the net present value. Figure 1. Final result General syntax of the formula =NPV(rate,...
The net present value, or simply NPV is the present value or actual value of a future cash flow. In other words, the NPV refers to the value of money that we are anticipating in the future. In many financial institutions, it is important to understand the value of future...