 # How to use the NPV function in Excel

NPV function is used to find the net present value of the data set in Excel.

Syntax:

=NPV(rate, value1, value2, ….)

Let’s use it in an example to understand it. Here one amount is debited and other amounts are credited at an interest of 10%.

Use the formula in D3 cell.

=NPV(C3, A3:A7)+A2 Press Enter. It means the net present value of the whole expense is \$789.
This amount is to be debited.

Hope you understood how to use NPV function to get the net present value of the data. Explore more articles on Accounting here. Please fill out your queries in the comment box below. We will help you.

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