@RJ2040
NPV Function
The formula for calculating the net present value (NPV) in Excel is as follows:
=NPV(rate, value1, value2, ...)
- rate: The discount rate or required rate of return per period.
- value1, value2, ...: The cash flows for each period. The initial investment or cash outflow is considered as a negative value (e.g., -1000), and subsequent cash inflows are considered as positive values (e.g., 500, 600, etc.).
To calculate the NPV for a series of cash flows over 8 years, you would include the values for each year in the formula. Here's an example:
=NPV(discount_rate, cashflow1, cashflow2, ..., cashflow8)
Make sure to adjust the number of cash flows and their corresponding values based on your specific scenario. The discount rate should be consistent with the timing and frequency of the cash flows (e.g., annual rate for annual cash flows).
Note that the NPV function assumes the cash flows occur at the end of each period. If your cash flows occur at the beginning of each period, you may need to adjust the formula accordingly.
