How do you calculate net-present value.?

Answer 1

Generally, for a single payment in the future, divide the current amount by the expected change in the value of money.

For example, if a payment of $4,000 is due in 8 years, and the expected rate of interest is 5% per year, compounded, then the net-present value is 4000/[(1.05)^8], about $2500 (I'm too lazy to do the math or look up the tables).

For an annuity, there are actuarial or financial tables to determine the net present value for a series of payments.

Answer 2

Add up all assets and subtract all liabilities.