In the B8 cell type NPV B1B3B7-B2. In the example shown the formula in F6 is. The NPV formula in Excel is called guess what NPV.
NPV discount rate series of cash flow Step 1 Enter the discount rate in a cell.
This will give you the present value of only the future cash flows. Unfortunately Excel does not define or calculate the NPV function correctly to calculate NPV correctly in Excel you should exclude the initial cash outflow Investment from your NPV formula and you should add that original investment amount at the end of NPV formula in order to find the actual NPV. Example of how to use the NPV function. NPV in excel is also known as net present value formula in excel which is used to calculate the difference of the present cash inflow and cash outflow for an investment it is an inbuilt function in excel and it is a financial formula which takes rate value for inflow and outflow as an input.