Within financial field, there is always a way to predict whether a new company or business project is going to make profit or not. In order to predict that, some will find standards that in essence could be used to check on value measurement. Some of such standard are being called as Net Present Value (NPV), IRR, PP, and ARR. This time, we would present Net Present Value as one of the standards used for measuring the value of business project. NPV terms can be explained as the “difference amount” between the sums of discounted: cash inflows and cash outflows. It compares the present value of money today to the present value of money in future which including inflation and returns in its calculation
When we speak about Net Present Value calculator, it is imperative to understand that the result will vary. However, each standard has its own method, so the result should different from one standard to another. One common thing that they all can be used to value the investment that is about to be done by yours. That calculator, on the other hand, can help you – as an investor – to calculate all the present values in term of cash outflows as well as cash inflows. Basically, the calculator should help you creating financial reports of which relates to your investment.
If you are using OpenOffice Calc as your spreadsheet, you can download this Net Present Value Calculator to ease you calculated your project NPV. You can also see how the built-in formula works inside this Calc template.
