Net present value (NPV) is the standard way to capture the time value of money when you appraise a long‑term project or investment. This webinar compares the ways to calculate NPV in Excel, including the approach we recommend: first principles with calculated discount factors.
Knowing both Excel’s own functions and the first principles method shows you what each one does and where each can go wrong.
What you will learn
- The theory of NPV and the time value of money in models for project finance and energy and infrastructure assets
- The NPV and XNPV functions in Excel
- How the model timeline affects NPV, XNPV and first principles calculations
- The link between NPV and IRR in a financial model
- Typical NPV errors in financial models and how to avoid them
Follow along with the workbook
The workbook for this session is on the tutorial Calculate NPV without Excel functions.