Which of these is a better investment? Use the NPV function to compare different investment opportunities. NPV function returns the present value of all future cashflows based on the discount rate. =NPV(Discount Rate, Value 1, Value 2,…) Discount Rate - This can be the inflation rate, minimum expected rate from the investment or the rate of return of an alternate investment opportunity Value 1 - The different cash inflows and outflows. All cashflows should be at same intervals. Example - All inflows and outflows are either monthly, quarterly or annual. Minimum one value is mandatory. You can enter up to 254 values All cash inflows are positive and outflows are negative. To get the final result add the initial investment (negative) to the result you get from the NPV function. The value is added because the initial investment is made today and not at the end of period 1. #msexcel #office365 #exceltipsandtricks