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 ...

Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

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

One of the best methods for calculating an average return for a stock investment is the XIRR function in Excel. The XIRR function calculates an annual return that would make the net present value ...

The payback period is the amount of time needed to recover the initial outlay for an investment. Learn how to calculate it with Microsoft Excel.