Difference between revisions of "Manuals/calci/NPV"
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| − | <div | + | <div style="font-size:30px">'''NPV()'''</div><br/> |
| + | *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 <math>NPV</math> analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. | ||
| + | *In <math>NPV()</math>, 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. | ||
| + | *<math>NPV</math> is related with the functions <math>PV</math> and <math>IRR</math>. | ||
| + | *The cash flows to begin either at the end or at the beginning of the period is the main difference between <math>NPV</math> and <math>PV</math>. | ||
| + | *Also <math>IRR</math> is the rate for which <math>NPV</math> equals zero.<math>NPV(IRR(....),...)=0</math>. | ||
| + | *The formula for <math>NPV</math> is: | ||
| + | <math>NPV=\sum_{i=1}^n \frac{values_i}{(1+rate)^i}</math>,where <math>n</math> is the number of cash flows in the list of values. | ||
| − | |||
| − | + | ==Examples== | |
| + | #=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 | ||
| − | + | ==Related Videos== | |
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| − | + | {{#ev:youtube|v=yelsD-wyILI|280|center|NPV Function}} | |
| − | + | ==See Also== | |
| − | + | *[[Manuals/calci/FV | FV ]] | |
| − | + | *[[Manuals/calci/IRR | IRR ]] | |
| + | *[[Manuals/calci/PV | PV ]] | ||
| − | + | ==References== | |
| − | * | + | *[http://en.wikipedia.org/wiki/Net_present_value Net Present Value] |
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| − | + | *[[Z_API_Functions | List of Main Z Functions]] | |
| − | + | *[[ Z3 | Z3 home ]] | |
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Latest revision as of 16:02, 15 November 2018
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:
analysis is sensitive to the reliability of future cash inflows that an investment or project will yield.
, first parameter is the discount rate for one period.
and 
.
.,where is the number of cash flows in the list of values.
,where 
is the number of cash flows in the list of values.
Examples
- =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
Related Videos
See Also
References