Manuals/calci/NPV

NPVDR, V1, V2, ...)

Where 'DR' is the rate of discount over the length of one period and V1,V2, ... are arguments.

This function find outs the net present value of an investment by using a discount rate and a series of future payments and income.

This type investment begins one period before the value1 cash flow and ends with the last cash flow in the list. Its calculation is based on future cash flows.
If n is the number of cash flows ,then the formula for NPV is:

This function is similar to the PV function. PV allows cash flows to begin either at the end or at the beginning of the period. Unlike the variable cash flow values of this function, PV cash flows must be constant.
It is also related to the IRR function. IRR is the rate for which NPV equals zero: NPV(IRR(...), ...) = 0.

NPV

Lets see an example,

NPVDR, V1, V2, ...)

B

10% DR

-12500 Initial investment

3500 V1

6100 V2

9000 V3

=NPV(B2, B3, B4, B5, B6) is 2259.067

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Examples

Description