### How To Calculate NPV (With Formula and Examples) | Indeed.com

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Feb 22, 2021 · Feb 22, 2021 · The interest rate is also vital to the calculation of the NPV. Most managers use the discount rate to represent the interest rate, but it can also be called the cost of capital, cutoff rate, required rate of return and hurdle rate. The interest rate or discount rate is the cost of capital or return that could be earned in an alternative investment.

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