How to Calculate NPV in Excel Using XNPV Function . To calculate the NPV of an investment project, you must consider the present value of all cash receipts and all cash disbursements related to ...

Calculating a profitability indexThe next step is to use the information from the net present value calculation to determine a profitability index for the investment.

How to calculate CPI in Excel. To calculate the Consumer Price Index between two years in Excel, take a sum of all the amounts spent on the basket of products over those two years.

Find out more about return on equity, the formula to calculate ROE, and how to calculate this measure of corporate profitability in Microsoft Excel.

Once you have the present value of the cash flows, divide it by the initial investment cost. The formula for the profitability index is: PI = Present Value of Future Cash Flows / Initial Investment.

The profitability index is calculated with the following formula: We calculated that the net present value of all of the lemonade stand's cash flows was $34.20. However, to calculate the ...