Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.
NPV(rate, cashflow1, [cashflow2,..])
- rate - The rate of discount over one period.
- cashflow1 - The first future cash flow.
- cashflow2 - [OPTIONAL] Additional future cash flows.
NPV(0.08,200,250,300) returns 637.67, the net present value of this investment.
- 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.