What interest rate to use for npv calculation
The discount or interest rate must be provided as a percentage or corresponding decimal number. For example, the 10 percent rate can be supplied as 10% or 0.1. If you enter the rate as number 10, Excel will treat it as 1000%, and NPV will be calculated wrong. That's how to use NPV in Excel to find the net present value of an investment. To calculate the NPV, the first thing to do is determine the current value for each year's return and then use the expected cash flow and divide by the discounted rate.