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(A2,A3,A4,A5)
Syntax
NPV(discount, cashflow1, [cashflow2, ...])
-
discount
- The discount rate of the investment over one period. -
cashflow1
- The first future cash flow. -
cashflow2, ...
- [ OPTIONAL ] - Additional future cash flows.
Notes
-
NPV
is similar toPV
except thatNPV
allows variable-value cash flows. -
Each
cashflow
argument should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment). -
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. -
IRR
under the same conditions calculates the internal rate of return for which the net present value is zero. -
If the cash flows of an investment are irregularly spaced, use
XNPV
instead.
See Also
XNPV
: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.
XIRR
: Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.
PV
: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.
MIRR
: Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.
IRR
: Calculates the internal rate of return on an investment based on a series of periodic cash flows.