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 ...

The Gordon growth model, also known as the dividend discount model, is often applied in Microsoft Excel to determine the intrinsic value of a stock.

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