This is a simplified example of how net present value calculations work but it’s meant to illustrate what the formula can tell you about an investment. What if you get $0 when calculating NPV?

The result using the NPV function for the example comes to $722,169. Then subtract the initial outlay from the value obtained by the NPV function to compute the final NPV.

The NPV formula contains secret ingredients, so it's hard for delinquent borrowers to influence the results when seeking a loan modification. There are a couple of things you can do.