The easiest way to calculate the net present value of an investment is using an online NPV calculator. You can also make these calculations in Excel.

NPV is essential to corporate budgeting. Excel can find the internal rate of return (IRR) and use that as the discount rate for an NPV of zero.

Net Present Value Formula There are two formulas you might use to calculate net present value. The one that you choose can depend on the number of cash flows the investment has.

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