If you have multiple cash flows coming in from different projects, it may be useful to determine how profitable they are by using a net present value calculator or PV calculator.
Data for the NPV Calculator
To use a PV calculator, you will need to have data from all your cash flows that you would like to determine profitability. You will also need to know the interest rate.
Once you have this information, the net present value calculator will calculate the total with interest rate. You will then be able to see how much profit you are making from each cash flow.
Using a PV Calculator to Make a Financial Decision
If you receive a negative or low result from a cash flow, it either would be best to change what you are doing with that project to turn your earnings around or completed end it. Alternatively, if you find that you are making great profit on a cash flow, you know that you can continue the project as is.
Online, Excel and Templates for Net Present Value Calculators
Start calculating your present value with this calculator online. Simply input the date and interest rate to receive your results instantly.
Instructions for Excel Spreadsheet NPV Calculator
Create your own calculator in Excel with these steps.
Templates for NPV and IRR Calculators
If you would rather use an Excel spreadsheet but don’t want to deal with building it yourself, consider using one of these templates ready for your data.
Photo Courtesy of: Jayson Ignacio on flickr





Fri, Jan 29, 2010
Tips and Tools