From the course: Google Sheets: Advanced Formulas and Functions
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Calculate the net present value (NPV) of an investment - Google Sheets Tutorial
From the course: Google Sheets: Advanced Formulas and Functions
Calculate the net present value (NPV) of an investment
- [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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Contents
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Determine loan payments2m 34s
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Determine the principal and interest components of loan payments4m 21s
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Calculate cumulative principal and interest paid4m 39s
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Calculate the present value of an investment3m 32s
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Calculate the future value of an investment3m
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Calculate the effect of interest4m 1s
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Calculate the incremental effect of inflation4m 17s
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Calculate the net present value (NPV) of an investment3m 57s
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Calculate the internal rate of return (IRR) of an investment2m 57s
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