# Manuals/calci/NPV

NPV()

• First parameter is the discount rate for the period.
• From the second parameter indicates the payments and income.
• NPV(), returns the net present value of an investment based on a series of periodic cash flows and a discount rate.

## Description

• This function gives the net present value of an investment.
• Net present value is the difference between the present value of cash inflows and the present value of cash outflows.
• The analysis is sensitive to the reliability of future cash inflows that an investment or project will yield.
• In , first parameter is the discount rate for one period.
• From the second parameter are representing the payments and income.
• Payments are equally spaced in time and occur at the end of the period.
• Arguments can be numbers ,empty cells,logical values or text representations of numbers.
• But error values or text that cannot be translated in to numbers.
• is related with the functions and .
• The cash flows to begin either at the end or at the beginning of the period is the main difference between and .
• Also is the rate for which equals zero..
• The formula for is:

,where is the number of cash flows in the list of values.

## Examples

1. =NPV(9%,-55000,2000,3500,6200,8500,10000) = -30193.387068
2. =NPV(6%,-2000,294,489,780,520,1250) = 673.05
3. =NPV(12%,-25000,3000,7500,4200,5100,12700,10000) = 1929.2652056111

NPV Function