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How to Calculate NPV (Net Present Value) in Excel

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In this video I will show you how to calculate NPV in Excel.
The NPV, or Net Present Value, is the present value, or actual value, of a future flow of funds. The present value of a future cash flow is the current worth of it. To know the current value, you must use a discount rate. The NPV includes not only the positive cash flows, or inflows, but also all expenditures, including the initial investment.

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