---
title: "Net present value with NPV | PracticeExcel"
description: "Practice NPV in a live spreadsheet: the net present value of a project, with the year 0 investment added outside."
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# **Net present value with NPV**

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In E2, work out the project's net present value at the rate in E1. NPV discounts every value it gets, so give it years 1 to 4 and add the year 0 investment after: NPV(E1,B3:B6)+B2.

E2fx

|  | A | B | C | D | E | F |
| --- | --- | --- | --- | --- | --- | --- |
| 1 | Year | Cash flow |  | Discount rate | 0.08 | |
| 2 | 0 | -10000 |  | Net present value |  | |
| 3 | 1 | 3000 |  |  |  | |
| 4 | 2 | 4000 |  |  |  | |
| 5 | 3 | 4000 |  |  |  | |
| 6 | 4 | 3000 |  |  |  | |
| 7 |  |  |  |  |  | |
| 8 |  |  |  |  |  | |

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