NPV – Net Present Value – How to calculate net present value (NPV)? Net present value is calculated as a sum of cash flow through project life cycle adjusted to the discount interest rate. NPV is calculated to estimate the net benefit of a project and other types of multi-year engagements. NPV Calculation Diagram – net present value calculation methodology. Net Present Value – NPV - this diagram visually depicts one of the common business frameworks, used by leaders to develop company strategy, tactics, models and approaches in an effort to enhance operations, marketing, develop new products and improve company competitive position..