The Net Present Value (NPV) and Discounted Cash Flow (DCF) formulas are both used to evaluate a potential investment. However, there is one key difference between the two: NPV includes an upfront cost in the calculation, while DCF does not. To calculate NPV, you first need to forecast the expected cash flows from the investment. Then, you need to select a discount rate that reflects the riskiness of the investment. Finally, you need to discount those cash flows back to the present. Once you have all of those figures, you can subtract the upfront cost of the investment from the present value to get the NPV. DCF is a bit simpler to calculate. You simply need to discount the expected cash flows back to the present using the selected discount rate. This gives you the present value of those cash flows. Then, you can add up all of the present values to get your final result.