Net Present Value is an important indicator to determine the current value after all your revenue and cost assumptions. Your cash flow’s Rate of Return and Net Present Value might be hard to estimate. But it will be shaping the company that you are planning to establish, the value of your business and capital of your projects.
One of the methods of doing feasibility study is to check the NPV and IRR values of the project. Once you input your estimated cash flows, the NPV Calculator Excel Template displays you the Net Present Value and the Internal Rate of Return of the project and much more.
NPV & IRR Calculator Features:
Net Present Value Calculator template is a tool to identify the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It gathers the data of the estimated cash flows in the future by dividing them into discount rates to find the Present Value of each cash flow. The sum of all the Present Value of the Cash flows forms Net Present Value formula.
It is constructed by 2 parts:
Here you should type in your data into the cash flow and input part. Once you change the Period on Dashboard the ratios will change accordingly.
If you choose Period Term as yearly, the template will calculate the ROI as net profit/initial investment for that period. In case of monthly period term, ROI is calculated as net profit (of particular month) / initial investment (of the first period).
Once the correctly estimated values are input it displays a line graph of the cash inflows and outflows, Net Present Value and Internal Rate of Return with the company’s estimated financials (if you have any).
You may just input your estimated cash flows to the Dashboard or may use the Income Statement to calculate a well-estimated cash flow.
Your Revenue, Gross Profit, Total Income, Total Expenses, EBIT and Net Profit will show up on the Dashboard section. Input your data only in the white cells because the gray and colored cells will show you the results automatically once you input to the necessary cells.
After putting your data, the only thing you have to do is refreshing the table.
NPV & IRR Calculator Features Summary:
Yearly or Monthly Time Period options
Visual Presentation of your Cash Flow
Income Statement for well estimated results
Informational notes included
No installation needed. Ready to use.
Works both on Mac and Windows
Compatible with Excel 2007 and later versions
Does not include any VBA macros