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 ...

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

Learn what Value at Risk is, what it indicates about a portfolio, its pros and cons, and how to calculate the VaR of a portfolio using Microsoft Excel.