NPV

Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

Sample Usage

NPV(0.08,200,250,300)
NPV(C2,C3,C4)
 

Syntax

NPV(rate, cashflow1, [cashflow2,..])

  • rate - The rate of discount over one period.
  • cashflow1 - The first future cash flow.
  • cashflow2 - [OPTIONAL] Additional future cash flows.

 

Examples

NPV(0.08,200,250,300) returns 637.67, the net present value of this investment.

Notes

  • NPV is similar to PV except that NPV allows variable-value cash flows.
  • Each cell in cashflow should be positive if it represents income from the perspective of the owner of the investment or negative if it represents payments.
  • Each cashflow argument may be either a value, a reference to a value, or a range containing values.  Cashflows are considered in the order they are referenced.
  • If the cash flows of an investment are irregularly spaced, use XNPV instead.