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NPV Calculation

  1. #1
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    NPV Calculation

    Hi,
    I like to learn how to use Net Present Value calculation to compare two different projects. If you had worked on this, please help me. The following is an use-case.

    Buying house
    Cost of house (85,00,000)
    1st year income -
    second year 3,00,000
    third year 3,00,000
    second year 3,00,000
    third year 3,00,000
    second year 3,00,000
    third year 3,00,000
    second year 3,00,000
    third year 3,00,000
    second year 3,00,000
    Sale 1,53,00,000

    Loan Int Rate 9.50%

    Return on other investments 7.50%


    Regards,
    Nirmal

  2. #2
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    Re: NPV Calculation

    Your little table doesn't make any sense, as you repeated the years a bunch of times, but this will show you how to do it.
    http://www.propertymetrics.com/blog/...-npv-in-excel/
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