This is a simplified example of how net present value calculations work but it’s meant to illustrate what the formula can tell you about an investment. What if you get $0 when calculating NPV?

The NPV formula contains secret ingredients, so it's hard for delinquent borrowers to influence the results when seeking a loan modification. There are a couple of things you can do.

A time period for the investment must also be determined. Use a time value of money table or the NPV formula available in most spreadsheet programs to calculate an IT project's NPV.

Learn how to use an annuity table to calculate the present value of payments with examples and formulas. Ideal for financial professionals and individuals planning investments.