0 8 1 3 0 0 1 0. Its important to understand exactly how the NPV formula works in Excel and the math behind it. NPV PV of future cash flows Initial Investment.
NPV Cash flow 1 it initial investment.
NPV 105 million92 million01071110107312100002 EXCEL FORMULA PV1073-920000000 11600002 Note the PV will compute as a positive number because you entered the PMT as negative however because it is the present value of the costs you will use it as a negative number in the NPV formula. Net Present Value is the present value of all cash inflows and outflows of a project over a period of time. Baseline NPV -500000 131034 136891 160164 137686 111030 176805. Begin aligned NPV frac 500 1 0081 frac 300 1 008.