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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 easiest way to calculate the net present value of an investment is using an online NPV calculator. You can also make these calculations in Excel.
Net Present Value Formula There are two formulas you might use to calculate net present value. The one that you choose can depend on the number of cash flows the investment has.
How to Use Excel to Calculate the ROI on a Product. "Return on investment" is a financial calculation used to gauge how well the money you invest earns you even more money.
How to Use Excel to Calculate a Bond's Yield to Call. Bonds are investment vehicles that make regular coupon payments until maturity, at which time the bond's face value is paid.
The article How to Calculate the Regression of 2 Stocks Using Excel originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days .