NPV practice

NPV returns the net present value of a series of future cash flows at a discount rate. Below are the 1 Excel exercise on Formuladrill that use it, each checked instantly in your browser.

Syntax

NPV(discount_rate, cash_flow1, [cash_flow2], ...)

What people get wrong

NPV assumes the first flow is one period away, so the initial investment today is added outside the function.

Excel exercise that use NPV

• Is the project worth it?Level 5Pro