To calculate NPV you need to know the annual discount. Steps to Calculate NPV in Excel There are two methods to calculate the NPV in the Excel sheet. The easier way to correctly calculate NPV in Excel is to exclude the initial cash outflow from your NPV formula.
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NPVrate value1 value2. NPVrate value1 value2. To calculate NPV you need to know the annual discount. The NPV Net Present Value function on excel calculates the Net Present Value for periodic cash flows based on a supplied discount rate and a series of payments.