NPV function

NPV (DiscountRate, FirstNumber, Numbers...) NPV (DiscountRate; FirstNumber; Numbers...)

DiscountRate

Number Number

The discount rate (expressed as a fraction of 1) which applies to one single period. (It is assumed to be constant for all periods.)

FirstNumber

The first payment made at the end of a series of fixed length periods.

Numbers

Payments made at the end of a series of fixed length periods.

Returns

Number Number

The net present value of an investment.

Returns the net present value (NPV) of a series of future cash flows, discounted at a constant rate. Each cash flow is assumed to occur at the end of a period. Use XNPV when the cash flows are not equally spaced.

Examples

NPV (6.5 % , 2000, 3000, 4000)

NPV (6,5 % ; 2000; 3000; 4000)

Returns roughly $7,834.31. Using a discount rate of 6.5% per year, $2,000 is received at the end of year one, $3,000 at the end of year two and $4,000 at the end of year three.

NPV (6.5 % , { 2000, 3000, 4000 })

NPV (6,5 % ; { 2000; 3000; 4000 })

Returns roughly $7,834.31. This is the same calculation as above, but the payments are expressed as an array instead of individual values.