Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

Most analysts use Excel to calculate NPV. You can input the present value formula, apply it to each year's cash flows, and then add together each year's discounted cash flows, minus expenditures ...

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Microsoft Excel offers four inherent functions for calculating the monthly payments, present value, number of payments and the interest rate of an annuity.

This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

Net present value (NPV) is used to estimate the profitability of projects or investments. You can calculate NPV in two ways using Microsoft Excel.