Time Value of Money, NPV, and IRR in Excel

This video covers the following learning objectives:

1. Explain the time value of money and its role in financial modelling.
2. Apply the PV (Present Value) and FV (Future Value) functions in Excel for single cash flow scenarios.
3. Calculate the Net Present Value (NPV) of a stream of cash flows using Excel’s NPV() function.
4. Incorporate initial investment correctly when using NPV functions in real-world models.
5. Calculate the Internal Rate of Return (IRR) for investment decision-making using Excel’s IRR() function.
6. Interpret the output of PV, FV, NPV, and IRR functions in financial evaluation contexts.
7. Use named ranges and consistent structure in time-based modelling for transparency and clarity.
8. Identify practical use cases for each function in capital budgeting and valuation.