Net Present Value (NPV) is a financial metric used to assess the profitability of an investment by calculating the present value of future cash flows, discounted at a given rate. It helps in decision-making by determining whether an investment will generate more value than its cost.
![](https://soft-tech-blog.com/wp-content/uploads/2025/02/Screenshot-2025-02-02-at-10.58.06 PM-1024x262.png)
![](https://soft-tech-blog.com/wp-content/uploads/2025/02/Screenshot-2025-02-02-at-11.08.09 PM-1024x432.png)
Since NPV > 0, the investment is profitable.
Why NPV is Important:
- Helps businesses compare multiple investment options.
- Accounts for the time value of money, making it more reliable.
- Used in Capital Budgeting and Project.
Now, Let’s have a look at how we turned the NPV Formula into a User-Friendly Tool to not only calculates your npv for different Industries but also visualizes your data in Real- Time.