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en:how-to-calculate-the-npv-with-excel [2018/07/20 18:33] federico [- Insert the Excel NPV Formula] |
en:how-to-calculate-the-npv-with-excel [2018/08/10 10:40] federico |
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| - | ====== How to Calculate NPV in Excel ====== | + | ====== NPV in Excel ====== |
| This pages teach you how to calculate the Net Present Value (NPV) of an investment project, using Microsoft Excel. | This pages teach you how to calculate the Net Present Value (NPV) of an investment project, using Microsoft Excel. | ||
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| {{:en:npv-excel-3.png?nolink|}} | {{:en:npv-excel-3.png?nolink|}} | ||
| - | ===== - Insert the Excel NPV Formula ===== | + | ===== 5- Insert the Excel NPV Formula ===== |
| Click in a cell in which you want to calculate the NPV and: | Click in a cell in which you want to calculate the NPV and: | ||
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| - close the formula, insert ")". If you press enter, you will have the present value of all future cash flows at period zero. | - close the formula, insert ")". If you press enter, you will have the present value of all future cash flows at period zero. | ||
| - add the initial investment: at the end of the previous formula, in the same cell, insert "+" and select the cell containing the initial investment. (B3 in our example). Press enter and you will have calculated the NPV in Excel. | - add the initial investment: at the end of the previous formula, in the same cell, insert "+" and select the cell containing the initial investment. (B3 in our example). Press enter and you will have calculated the NPV in Excel. | ||
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| + | {{:en:npv-excel-4.png?nolink|}} | ||
| The final formula looks like this: | The final formula looks like this: | ||
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| =NPV(E2,B4:B8)+B3 | =NPV(E2,B4:B8)+B3 | ||
| - | {{:en:npv-excel-4.png?nolink|}} | + | |
| {{:en:npv-excel-5.png?nolink|}} | {{:en:npv-excel-5.png?nolink|}} | ||