Google Sheets | NPV | Function | Compare NPV of Two Projects | Example | Spreadsheet | Tutorials

The Google Sheets NPV function assists to assess the viability of projects. Subtract the initial investment from the sum of the present values of the cash flows to get the NPV or the net present value. If the NPV is a positive value, it indicates that the investment on the project is viable.
Assume that you want to assess the viability of two projects, say Project A and Project B. Calculate the NPV of the two projects. Say that Project A and Project B have a positive and negative NPV respectively. So, Project A can be considered.
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How to Use QUERY in Google Sheets?
QUERY helps, among others, to extract specific or all data from a range:
• Google Sheets | QUERY ...
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How to Use QUERY with WHERE clause and MATCHES operator in Google Sheets?
MATCHES operator assists to conduct an exact or a wildcard search:
• Google Sheets | QUERY ...
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How to Use QUERY with WHERE clause and starts with or ends with operators in Google Sheets?
Use where clause and starts with, ends with or both the operators to get data based on one or more conditions:
• Google Sheets | QUERY ...
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How to Use QUERY with WHERE clause in Google Sheets?
To conditionally extract data, use the QUERY function with its WHERE CLAUSE:
• Google Sheets | QUERY ...
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How to Use XLOOKUP to Extract Multiple Values in Google Sheets?
XLOOKUP can return a single row or column with the search key:
• Google Sheets | XLOOKU...
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How to Use VLOOKUP in Google Sheets?
Use VLOOKUP to get a single value:
• VLOOKUP Google Sheets ...
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How to Use IFS in Google Sheets?
IFS allow multiple logical expressions:
• Google Sheets IFS | Te...
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How to Use IF in Google Sheets?
Use IF to compare one value with another:
• Google Sheets IF | Tut...
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How to Use IF with AND in Google Sheets?
Use IF with AND to Use Multiple Logical Expressions in IF:
• Google Sheets | IF | A...
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How to Create a Pivot Table in Google Sheets?
Create a pivot table for calculation and in-depth data analysis:
• Google Sheets | Pivot ...
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Which one to Use? A Pivot Table, or COUNTBLANK Function, to Count Blank Cells in Google Sheets:
Gives steps to use a pivot table or COUNTBLANK to count blank cells:
• Google Sheets | Pivot ...
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Let's look at the syntax of the NPV function formula:
=NPV(discount, cashflow1, [cashflow2, …])
discount is the discount rate for one investment duration.
cashflow1 is the first future cash flow.
cashflow2 and others are optional, and are the second and subsequent cash flows.
NOTE: You have to omit the investment value and include only those cells with the cash flow values, while specifying the range for the cash flows. Then, subtract the investment value from the present value.
Example of the NPV function formula:
Assume that the initial investment of a project is $10000. Cash flows of $2700 is expected in each of the periods 1 to 5. Discount rate is 10%. Further assume that investment value is in cell B3 and cash flow values are in cells B4 to B8.
The NPV is
=NPV(10%,B4:B8)-(-B3)
=$235.12
Review this video tutorial, which gives the steps to use the NPV function, to assess viability of projects, with examples.