Most analysts use Excel to calculate NPV. You can input the present value formula, apply it to each year's cash flows, and then add together each year's discounted cash flows, minus expenditures ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

Reviewed by Thomas J. Catalano Fact checked by Vikki Velasquez The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the ...

Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.

The Gordon growth model, also known as the dividend discount model, is often applied in Microsoft Excel to determine the intrinsic value of a stock.

The payback period is the amount of time needed to recover the initial outlay for an investment. Learn how to calculate it with Microsoft Excel.