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