NPV in Excel | How to Calculate Net Present Value in Excel?

In this video on NPV Excel Function, here we discuss the NPV Formula in Excel and how to use NPV function along with excel example.

𝐍𝐏𝐕 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧 𝐢𝐧 𝐄𝐱𝐜𝐞𝐥
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The Net Present Value (NPV) function on excel calculates the Net Present Value for periodic cash flows based on the discount rate provided and a number of payments.

𝐍𝐏𝐕 𝐄𝐱𝐜𝐞𝐥 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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Below is the NPV Formula

=NPV (rate, value1, [value2], ...)

𝐀𝐫𝐠𝐮𝐦𝐞𝐧𝐭𝐬
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#1 - rate - Discount rate over one period.

#2 - value1 - First value(s) representing cash flows.

#3 - value2 - [optional] Second value(s) representing cash flows.

𝐓𝐡𝐢𝐧𝐠𝐬 𝐭𝐨 𝐑𝐞𝐦𝐞𝐦𝐛𝐞𝐫 𝐰𝐡𝐢𝐥𝐞 𝐮𝐬𝐢𝐧𝐠 𝐍𝐏𝐕 𝐄𝐱𝐜𝐞𝐥 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧
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#1 - The NPV investment starts one period ahead of the value 1 cash flow and ends with the list's last cash flow. The NPV in excel calculation is based on future cash flows.

#2 - If arguments are provided separately, numbers, logical values, blank cells and numerical text representations are evaluated as numerical values, while function ignores other cell values in text and error type.

#3 - If the arguments are given within a range, all non-numeric values within the range will be ignored.

To know more about 𝐍𝐏𝐕 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧 𝐢𝐧 𝐄𝐱𝐜𝐞𝐥, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/npv-in...

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