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 ...

Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

Learn how to calculate the net present value (NPV) of your investment projects using Excel's XNPV function.

Therefore, the model has you come up with estimates of those dividend payments and then calculates their present value. In order to use the model, you have to make several assumptions.

The future value function capability in Microsoft Excel helps business owners easily assemble data for projects such as budgeting and company or asset valuation exercises. The Excel formula is ...