Learn to calculate present value (PV) in Excel using rate and period inputs for better investment comparisons and informed financial decisions.

Discover how to easily calculate the payback period of investments using Excel, a crucial skill for evaluating financial projects and capital budgeting.

An even cash flow of regularly scheduled payments defines an annuity. If you borrow money to start your business, the monthly payments are calculated using an annuity formula. Two basic annuity ...

The basic premise of finance is that money has time value -- a dollar in hand today is worth more than a dollar in the future. The study of finance seeks to make it possible to compare the value of a ...

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

Imagine investing in a promising project, only to realize years later that it’s taking far longer than expected to recoup your initial outlay. Wouldn’t it have been invaluable to know upfront how long ...

Definition: The net present value (NPV) of an investment is the present (discounted) value of future cash inflows minus the present value of the investment and any associated future cash outflows.

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...