From the course: Google Sheets: Advanced Formulas and Functions

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Calculate the net present value (NPV) of an investment

Calculate the net present value (NPV) of an investment - Google Sheets Tutorial

From the course: Google Sheets: Advanced Formulas and Functions

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Calculate the net present value (NPV) of an investment

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- [Instructor] The net present value of an investment is the present value of the investment minus the amount of money it cost to buy into it. All of the investment's cash flows must occur at the same interval for the calculation and then using those functions to be correct. This workbook contains a single worksheet and on it, I have information regarding two investments. The first piece of information is in cell B three and that is the discount rate. The discount rate, which in the case is 4% is the amount that I believe I can earn on my money, risk free. So, for example, this might be a product that I know will sell and if i make more of it, I can sell it or it could be a safe investment such as a triple A government bond with very low risk. Below that in the part of the worksheets starting at row five, I have information for two investments. They're very similar but there is an important difference. For investment one, I see that I have my initial investment of $100,000 and in…

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