How is Net Present Value of company calculated?



0
The general formula for Net Present Value(NPV) comes Present Value(PV)and the formula for it is PV=FV/(1+Discount Rate)^n where is n=no.of years .and then the NPV=PV+(Investment made)
How is 'n' calculated in Excel as the formula here is =NPV(Dis Rate,FCF)

1 Answer(s)


0

Excel will assume n based on the number of cash flows you enter
If you have 2 cash flows then n = 2
If you have 5 cash flows then n=5