https://robfreeman.com/npv A present value calculation, also called a “net present value calculation”, determines the present value of future cash flows through a process called “discounting”. Discounting is the opposite of compounding. If you are investing in a cash flowing project that offers a tax credit, such as a solar project, you can use a net present value calculator like the one at robfreeman.com/npv to calculate the present value of your project, including the tax benefit Present value calculations are helpful for determining whether an investment that has future cash flows makes sense today.