Category: capital budgeting
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How to calculate NPV in Excel?
In this tutorial, we explain how to calculate the net present value (NPV) of an investment project using the NPV and XNPV functions in Excel. We’ll show how to compute the NPV without using these functions as well. If you prefer to go over this tutorial in a video format or if you’re visiting this…
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How to calculate payback period in Excel?
In this tutorial, we’ll teach you how to compute both the payback period and the discounted payback period in Excel. If you’ve arrived here from our Youtube channel, click on “Video tutorial and Excel template” section in the Contents box below to download the Excel template. If you’d like to learn more about the payback…
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Payback period
In this lesson, we’ll learn about the (discounted) payback period rule, which is a popular capital budgeting tool that helps corporate managers make investment decisions. We’ll discuss the pros and cons of this rule vis-à-vis the net present value (NPV) rule and will offer a (discounted) payback period calculator as well. What is the “payback…
