The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.

Microsoft Excel has dozens of preset formulas for many types of mathematical calculations, but compounding interest isn't one of them. To calculate the future value of a single amount compounded ...

The payback period is the amount of time needed to recover the initial outlay for an investment. Learn how to calculate it with Microsoft Excel.