Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Suzanne is a content marketer, writer, and ...

IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and other ...