Financial functions are often used in Excel to calculate financial problems such as net present values and payments. In Microsoft Excel, there are over 50 + Financial functions available.

Net present value, or NPV, calculates how profitable a project or investment is in today's dollars. Learn how it's calculated.

Discover the difference between present value (PV) and net present value (NPV) and how theses calculations are used in capital budgeting.

Net Present Value Method Under the net present value (NPV) method, you examine all the cash flows, both positive (revenue) and negative (costs), of pursuing a project, now and in the future.

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 ...

When net present value is less than zero, the project is expected to lose money. Projects with a negative net present value should be avoided.