Learn how to calculate the discount rate in Microsoft Excel, what the discount factor is, and how the discount rate and discount factor compare.

Calculating IRR in Excel The internal rate of return (IRR) is a way to find what discount rate would cause the net present value (NPV) of a project to be $0—in other words, to find the highest ...

Most analysts use Excel to calculate NPV. You can input the present value formula, apply it to each year's cash flows, and then add together each year's discounted cash flows, minus expenditures ...

The interest rate that produces a zero-sum NPV is then declared the internal rate of return. To simplify this process, Excel offers three functions for calculating the internal rate of return, each of ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends.

Find the IRR in Excel by employing the IRR function, then use it as the discount rate that causes NPV to equal zero. Use What-If analysis, a built-in calculator in Excel, to solve for the discount ...