Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

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 ...

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.

Learn how to use an annuity table to calculate the present value of payments with examples and formulas. Ideal for financial professionals and individuals planning investments.

Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

Reviewed by Thomas J. Catalano Fact checked by Vikki Velasquez The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the ...

When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. Consider teaching students to calculate the issue price by using the net present ...

As with the present value of an annuity, you can calculate the future value of an annuity by turning to an online calculator, formula, spreadsheet or annuity table. You’ll need this information: ...

Everything you need to know to calculate an interest rate with the present value formula.

Calculating a profitability index The next step is to use the information from the net present value calculation to determine a profitability index for the investment.