This video is a step-by-step guide to solving net present value (NPV) problems, a key topic in introductory finance courses. Using a practical example, we calculate the NPV of an investment by Jake and Sarah, comparing two methods: the formula-based approach and the calculator-based approach. You’ll learn how to set up formulas, input values into a financial calculator, and determine which method is best for exams. Whether you're preparing for a test or just strengthening your finance skills, this video equips you with the tools to confidently tackle NPV questions.