You can use the following template to calculate the NPV using **numpy_financial**:

import numpy_financial as npf npv = npf.npv(discount rate, [initial investment in negative terms, cash flow for each year separated by comma]) print(npv)

Let’s now review a simple example with the steps to calculate the NPV.

## Steps to Calculate the NPV using Numpy

### Step 1: Install the numpy_financial package

Install the **numpy_financial** package using:

pip install numpy_financial

### Step 2: Gather your data

Now you’ll need to gather the data for the NPV calculation.

For example, let’s suppose that you have the following data about a project:

- The initial investment is
**$1100** - The project is expected to generate:
**$300**in year-1**$450**in year-2**$800**in year-3

- The discount rate is
**5%**

### Step 3: Calculate the NPV

To calculate the NPV using **numpy_financial**:

import numpy_financial as npf npv = npf.npv(0.05, [-1100, 300, 450, 800]) print(npv)

Run the code in Python and you’ll get the NPV of** 284.947**

Since the NPV is positive, you should consider to invest in the project.