Categories
Resources for Accountants

How to Calculate Net Present Value in Excel [Video]

How to Calculate Net Present Value in Excel

In this video I’m going to show you how to calculate the NPV (or net present value) of a project in Excel. So I’ve got 20 different projects here with a series of cash flows. Cash outflows are in parentheses, while the cash inflows aren’t. There’s an initial cash outflow in period 0 and then a series of cash flows occurring at the end of each year for 5 years.

To calculate the NPV of a project, we’re going to use Excel’s NPV function. So type =NPV and then select the discount rate. I’m going to anchor the discount rate so I’ll be able to drag down the formula and calculate the NPV of each of the 20 projects. You can also type in the discount rate directly; in this case, you’d type in 0.09.

Next, highlight the future cash flows. Now you might be tempted to highlight all the project’s cash flows, but don’t do it. You only highlight the cash flows that occur after period 0.
So why isn’t the cash outflow that occurs today included in the values? It’s because the NPV function assumes cash flows occur at the end of each period. If the initial cash flow occurs today, then it doesn’t occur at the end of the period and thus shouldn’t be part of the NPV function.

But don’t worry, we will account for the cash flow in period 0 separately. After you close the parentheses, add the cash flow from period 0 and hit “Enter.” Thus, the cash outflow that occurs today is still part of the project’s NPV, it’s just not part of the values we enter for NPV function.

Now you can see the NPV for Project 1, which is $28,345. To see the NPV for the other 19 projects, just click the fill handle and drag and it down.

Now the NPV function assumes the cash flows occurred at the end of each period and that the cash flows were periodic. But what if the cash flows weren’t equally spaced out?

For example, what if we had a project with nonperiodic cash flows like this? We have one cash flow occurring on May 6, one occurring February 19, and so forth. We shouldn’t use the NPV function here because the cash flows don’t occur at regular intervals. Instead, we should use the XNPV function. Just type =XNPV, enter the discount rate, select the range of values, and select the dates, and you can see that the NPV of this project is $713. Note that I included the first cash flow in the XNPV function; this is different from the NPV function where we had to deal with the upfront cash flow separately.

Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.

SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z

SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin

GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com

LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/

GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin

ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index

CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira

CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin

ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com

Watch/Read More
Categories
Resources for Accountants

Master Investment Banking with WallStreetMojo's IBMP Course! [Video]

🚀 Aspiring to break into investment banking or elevate your finance career? Whether you're a student, analyst, or professional seeking comprehensive training, this program is your gateway to mastering investment banking with real-world applications!​ 🎓 Introducing WallStreetMojo’s Investment Banking Mastery Program – Your all-in-one, expert-led journey into financial modeling, valuation, M&A, LBOs, and more!​ ✅ 91+ hours of self-paced, expert-led video tutorials ✅ One-year unlimited access – Learn at your convenience! ✅ Hands-on Excel-based learning with 100+ downloadable templates ✅ Master financial modeling, DCF, LBO, M&A, accounting, and derivatives ✅ Earn 18 industry-recognized certifications upon course completion ✅ Rated 4.8⭐ by thousands of satisfied learners!​ 🔹 What You'll Learn: 📌 Build comprehensive financial models from scratch 📌 Perform in-depth valuation analyses using DCF and trading comps 📌 Execute merger and acquisition modeling with real-world case studies 📌 Understand leveraged buyouts and construct LBO models 📌 Gain proficiency in Excel for finance, accounting principles, and ratio analysis 📌 Explore financial markets, instruments, and derivatives​ 📜 Upon completion, you'll receive 18 professional certificates to enhance your resume and open doors to opportunities in investment banking, private equity, corporate finance, and more.​ 💡 Join over 89,000 learners who have transformed their careers with WallStreetMojo. It's your turn to gain a competitive edge in the finance industry!​ 🎯 Start your journey to mastering investment banking today – Click below to enroll now! 👇​ 🔗 https://www.wallstreetmojo.com/investment-banking/investment-banking-mastery-program-certification-course-bundle/ 📢 Subscribe for more practical finance training and career tips! 🔔 Turn on notifications to stay updated on the latest in finance education!

Categories
Resources for Accountants

Comprehensive Training with WallStreetMojo! [Video]

🚀 Aspiring to break into investment banking or elevate your finance career? Whether you're a student, analyst, or professional seeking comprehensive training, this program is your gateway to mastering financial modeling and valuation with real-world applications!​ 🎓 Introducing WallStreetMojo’s Financial Modeling and Valuation Certification Course Bundle – Your all-in-one, expert-led journey into financial modeling, valuation techniques, and investment banking skills!​ ✅ 25+ hours of self-paced, expert-led video tutorials ✅ One-year unlimited access – Learn at your convenience! ✅ Hands-on Excel-based learning with 40+ downloadable templates ✅ Master financial modeling, DCF, trading comps, and more ✅ Exclusive McDonald's case study for practical application ✅ Earn 2 industry-recognized certifications upon course completion ✅ Rated 4.8⭐ by thousands of satisfied learners!​ 🔹 What You'll Learn: 📌 Build comprehensive financial models from scratch 📌 Perform in-depth valuation analyses using DCF and trading comps 📌 Understand financial statements and accounting principles 📌 Gain proficiency in Excel for finance and modeling 📌 Apply real-world scenarios to reinforce learning​ 📜 Upon completion, you'll receive 2 professional certificates to enhance your resume and open doors to opportunities in investment banking, equity research, corporate finance, and more.​ 💡 Join over 100,000 learners who have transformed their careers with WallStreetMojo. It's your turn to gain a competitive edge in the finance industry!​ 🎯 Start your journey to mastering financial modeling and valuation today – Click below to enroll now! 👇​ 🔗 https://www.wallstreetmojo.com/financial-modeling/financial-modeling-and-valuation-certification-course-bundle/ 📢 Subscribe for more practical finance training and career tips! 🔔 Turn on notifications to stay updated on the latest in finance education!

Categories
Resources for Accountants

5 Personal Finance Books That Will Change YOUR Life [Video]

In this video, we discuss the Top 5 Personal Finance Books that you will change YOUR Life. Here are the top 5 Personal Finance Books#1 - Rich dad poor dad - Get this book from https://bit.ly/3IdH1vGThis book covers the following topics- Financial IQ- Basics of Investment. - Difference between working for money and money working for us.- Techniques to invest in real estate. - Starting and owning your own business.- The major difference between assets and liabilities.#2 - The Automatic MillionaireGet this book from https://bit.ly/36AKQ0lThis book covers the following topics- Latte factor- Importance of saving every day - How to pay yourself first- Disciplined investment- Automated payments- Willpower#3 - I will Teach You to be Rich by Ramit SethiGet this book from https://bit.ly/3LTg17aThis book covers the following topics- Step-by-step guide to improve your finances - Six weeks time frame to gain control over money- Retirement funds- Tips to increase your wealth- Cultivate good financial habits#4 - Debt-free by 30Get this book from https://bit.ly/3H7iG9BThis book covers the following topics- How to handle Bank fees- Tips to manage credit card debt- Insurance issues - Tips for maintaining a strict budget- Complete control over your finances#5 - Get a Financial LifeGet this book from https://bit.ly/3s7scoUThis book covers the following topics- Face challenges and take risks- Calculated and practical decisions- Latest tax rules- How to find smart investments - Tips to protect yourself from identity theft #personalfinancebooks #toppersonalfinancebooks #wallstreetmojoFor more books on this topic refer to our article at: https://www.wallstreetmojo.com/best-personal-finance-books/Follow us at:Youtube ➤ https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedin ➤ https://www.linkedin.com/company/wallstreetmojo/Facebook➤ https://www.facebook.com/wallstreetmojoInstagram➤https://www.instagram.com/wallstreetmojoofficial/

Categories
Resources for Accountants

Master Finance with WallStreetMojo Membership One-Time Payment, Lifetime Access! [Video]

🚀 Want to build a successful career in finance but don’t know where to start? Or maybe you’re already in the finance industry and want to level up your skills? We've got the perfect solution for you! 🎓 Introducing WallStreetMojo Membership – Your All-Access Pass to Mastering Finance! ✅ One-time payment, lifetime access – No subscriptions, no hidden fees! ✅ 50+ expert-led courses covering Financial Modeling, Investment Banking, Excel, Power BI & more! ✅ Learn at your own pace – Anytime, anywhere! ✅ Taught by industry veterans with 50+ years of combined experience. ✅ Trusted by thousands – Proven track record with 4.8⭐ on Trustpilot & 4.9⭐ on Google! 🔹 Courses You Get Access To: 📌 Financial Modeling Live Boot Camp 📌 Investment Banking Mastery Program 📌 Financial Analyst Fast Track 📌 Excel & Power BI Courses 📌 Technical Analysis & More! 📜 Earn certificates for every course you complete! Boost your resume & unlock career opportunities in Investment Banking, Equity Research, FP&A, and Corporate Finance. 💡 Thousands have already joined & landed jobs at top financial firms—Now it’s your turn! 🎯 Take control of your finance career today! Click below to join now! 👇 🔗 Join WallStreetMojo Membership Now 📢 Subscribe for more finance insights & career tips! 🔔 Turn on notifications so you never miss an update!