What is net present value (NPV)?
How do I use NPV to compare the merits of investments for which cash flows are received at several points in time?
How do I use the Excel NPV function?
How can I compute NPV when cash flows are received at the beginning of a year or in the middle of the year?
How can I compute NPV when cash flows are received at irregular intervals?
Consider the following two investments, whose cash flows are listed in the file NPVExample.xls and shown in Figure 8-1.
Figure 8-1. To determine which investment is better, we need to calculate net present value.
Investment 1 ...