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Tag: Net Present Value

How to calculate Net Present Value (NPV) in Excel

NPV formula for net present value To calculate Net Present Value (NPV) you can use the NPV function. Formula =NPV(rate,cashflows)-initialcost Explanation In the example shown, the formula in F6 is: =NPV(F4,C6:C10)+C5 How this formula works Net Present Value (NPV) is the present value of expected future cash flows minus the initial cost of investment. The NPV function in Excel only…