MS Excel Formula for NPV Calculation with Discount Rate, Income and Investment Values

 What is NPV Function In Microsoft Excel?

The financial function called NPV full form is Net Present Value of income and investments. It is the most important thing to understand about the time value of money in financial institutions.

 =NPV(Discount_rate, cash flaw_series)

NPV Function has the following parameters:

1. Rate - It is mandatory. This is rate of discount over the years or period of times.
2. Value 1, Value 2, Value 3, Value 4 and so on; accepts up to 254 arguments.
3. At least one argument is required.

Let's understand with an example:

And, you will get the NPV of the cash flows as below:

I recommend to use XNPV formula for specific time XNPV Function With Example