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

[@priyapillai3449]

Thank you so much for the video. I was struggling to understand all these terms, you made it a breeze. Very clear and concise. Thank you again for sharing your knowledge very skillfully.

[@wallstreetmojo]

Glad it was helpful!

[@lindae-da2444]

Thank you Vaidya, a really clear and well-illustrated breakdown of NPV - currently studying MSc and there are so many poorly explained examples available. I will definitely refer to your videos in the future.

[@wallstreetmojo]

Your comment made our day, thank you!

[@vineetdubey2063]

It was a wonderful video. It became very easy for non-finance people like me to understand the basic concepts through this video!!

[@beccaheller3052]

Thank you so much for this video. You make it so easy to understand and walking step-by-step through the Excel formulas is huge!

[@wallstreetmojo]

Glad we're on the same page, cheers!

[@rajeshm6703]

Excellent teaching!

[@braysonfadhili5891]

Very powerful tutorial. Thank you and be blessed

[@wallstreetmojo]

Thanks for sharing your perspective!

[@shabeernaha]

🎉🎉 Very simple and crystal clear.Thanks Vaidya

[@wallstreetmojo]

Glad you liked it

[@mohitsingha210]

Thank you. Very well explained, including the fact that all the inputs are assumption based!

[@wallstreetmojo]

You're very welcome!

[@MuhammadSalmanHabib]

Very useful, explained like a Pro.

[@wallstreetmojo]

🎁Check out our Free and Paid courses at www.wallstreetmojo.com/all-courses/

[@afzal1jeddahwala]

Hi Dheeraj, Have read your articles and postings on the Web. Glad to see you on KZbin......!!

[@lolingthornton8189]

Thank you for this video. I'm in the process of taking my Priniciples of Finance course in college, it's great to see these formulas in real time. I look forward to reviewing your videos on this subject going forward.

[@wallstreetmojo]

Appreciate your feedback, more content coming soon!

[@mathumalarganesan]

Great tutorial so far that I came a cross. I'm currently pursuing my MBA and your videos on Finance and Accounts are exceptional. Thank you.

[@wallstreetmojo]

Your comment made our day, thank you!

[@WorDouglas8]

Hi I though this was well explained and great application. Request - Can you do a video that explaine Pay Back, NPV and IRR and at the end a comparision of the differences of all three investment tools PLEASE!

[@digvijaychoudhari4128]

Good explanation of npv sir

[@samwai4424]

Good explanation of NPV. It's simple and easy to understand. Can you explain how to create graph using excel. I'm a beginner here.

[@flaviot5226]

Thank you very much very intersting and very good explanation; the only thing I couldn't catcht how do you design the GRAPH

[@richavora7819]

fantastically described

[@wallstreetmojo]

🎁Check out our Free and Paid courses at www.wallstreetmojo.com/all-courses/

[@mabarbadminton6100]

beautiful.... on point crystal clear

[@wallstreetmojo]

Thanks for sharing your perspective!

[@EK-vh7pw]

Thank you so so much!

[@rafiuahmed]

Thank you Dheeraj. Amazing explanation of NPV. If you have a new project that has a setup period, for instance, the project takes 2 years to set up before cash inflows can start. Do you indicate the cash inflows as zero for the first 2 years?

[@wallstreetmojo]

Yes, that's correct Rafiu!

[@shahbazyandav82]

Thanks a lot for this useful video

[@wallstreetmojo]

Thanks for watching, glad you liked it!

[@deepankibasra6939]

Nice 👍

[@francoisandrieu8101]

you are incredible

[@guzalkhonamanbaeva199]

Thanks a lot😊

[@wallstreetmojo]

🎁Check out our Free and Paid courses at www.wallstreetmojo.com/all-courses/

[@kanchandatta4668]

What are the determinants of discount rate? Is it cost of capital + expected rate of interest rate?

[@ellykappatos2064]

What about if the cashflows are considered a perpetuity and grow at a certain rate? Help!!

[@haritsanat1]

So present value is how much we need to invest now given our accepted rate of return

[@haritsanat1]

And NPV is, given our accepted rate of return will the project cash flow result positive flow or negative flow. If it is positive we accept it otherwise reject it

[@TheElBudo]

In your example you use increasing cash flow, seeming to echo the years: 110 for year 1, 120 for year 2...This causes the PV values to also be regularly increasing all while using the $100 amount for clarity - but it's just a coincidence, no?

[@SOLO19847]

best

[@wallstreetmojo]

Thanks for watching, glad you liked it!

[@haritsanat1]

If NPV is zero we earn exactly the accepted rate of return