NPV practice

NPV returns the net present value of a series of future cash flows at a discount rate. Below are the 2 financial modeling exercises on Modeldrill that use it, each checked instantly in your browser.

Syntax

NPV(discount_rate, cash_flow1, [cash_flow2], ...)

What people get wrong

NPV assumes the first flow is one period away, so the initial investment today is added outside the function.

financial modeling exercises that use NPV

• NPV, IRR and profitability indexLevel 4Pro
• NPV across discount ratesLevel 5Pro

Often used together with: IRR