How to Use Net Present Value (NPV) Let's say you're contemplating setting up a factory that's going to need initial funds of $250,000 during the first year.

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 calculate the net present value (NPV) of your investment projects using Excel's XNPV function.

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: ...

Discover why it is important to include changes to net working capital as a component in calculating the net present value (NPV) of a company.

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.