What is NPV function in Excel? NPV function is one of the Financial functions in Microsoft Excel that calculates the net present value of an investment by using a discount rate and a series of future payments (negative values) and income (positive values). Syntax of NPV function NPV(rate,value1,[value2],…) The NPV function syntax has the following arguments: Rate: The rate of discount…
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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…