NPV Explained + How to Calculate NPV in Excel

Great video. Would be good to know in plain English what the discount rate is. Is it supposed to be equal to the expected interest rate based on inflation or how do you assume the discount rate?

You said in the beginning that the for the discount rate one commonly uses the WACC. Where in the WACC the cost of equity so for example a payout to shareholders is already included.

So is it a fair general assumption, that a NPV above zero is the value of the investment above the assumed return? (E.g. WACC)

thanks😊