Net Present Value (NPV) - Basics, Formula, Calculations in Excel (Step by Step)

In this video, we will talk about the Net Present Value (NPV), its meaning, formulas, calculations, and its uses. 00:00 - Introduction 01:05 - Future Value Concept 05:11 - Present Value Concept 08:47 - NPV - Net Present Value of Project 12:31 - NPV Formula 13:50 - NPV Calculation in Excel 16:14 - NPV Graph Profile 22:36 - NPV Limitation What is NPV? Net Present Value is primarily used to assess a project's profitability and is calculated as the difference between the present value of cash inflows and the present value of cash outflows over the project's time period. Formula for NPV = NPVt=1 to T = ∑Xt / [(1+R) t – X0] Two parts of NPV: 1. Cash Inflows from Investment 2. Cost of Investments in the project Uses of NPV: 1. It compares both cash inflow and outflow 2. It offers a conclusive decision 3. Very easy to calculate #wallstreetmojo, #NPV, #netpresentvalue For more details, you can refer to our article at -https://www.wallstreetmojo.com/net-pr... Subscribe to Our Channel - Youtube ►    / @wallstreetmojo   LinkedIn ►   / mycompany   Facebook ►   / wallstreetmojo   Instagram ►   / wallstreetmojoofficial   Twitter ►   / wallstreetmojo