This net present value template helps you calculate net present value given the discount rate and undiscounted cash flows.
Here is a screenshot of the net present value template:
Enter your name and email in the form below and download the free template now!
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business, investment security, capital project, new venture, cost reduction program, and anything that involves cash flow.
The formula for Net Present Value is:
Z1 = Cash flow in time 1
Z2 = Cash flow in time 2
r = Discount range
X0 = Cash outflow in time 0 (i.e. the purchase price / initial investment)
NPV analysis is used to help determine how much an investment, project, or any series of cash flows is worth. It is an all-encompassing metric, as it takes into account all revenues, expenses, and capital costs associated with an investment in its Free Cash Flow (FCF).
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.