Net Present Value (NPV) Calculator
The present value represents the value of money or cash flows receivable at some date in the future. Present value is one of the main tools in financial theory, and is used, amongst other things, in choosing various investments with regard to financing alternatives. Present value also appears in other branches of financial theory, and is used in calculating the present value of financial instruments, such as bonds, loans, projects etc. For further information and study, refer to the Finance course or e-book.
The calculator shows a series of years in chronological order, with two rectangles appearing next to each one, one for the principle/investment and the other the interest/coupon. Enter the cash flow, in accordance with the number of years in the appropriate place. Enter the market rate of interest and press "Calculate".