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NPV

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

Note:

Interest rate calculation methods differ from country to country. This function calculates an interest rate based on U.S. interest rate standards.

Syntax

NPV(n1, n2 [, ...])

Parameters

 

Parameter	Description
n1	A numeric value or expression representing the discount rate over a single period.
n2	A numeric value or expression representing a cash flow value, which must occur at the end of a period. It is important that the values specified in n2 and beyond are in the correct sequence.

The function returns an error if n1 is negative or 0. If any of the parameters are null, the function returns null.

Note:

FormCalc follows the IEEE-754 international standard when handling floating point numeric values. For more information, see “Number literals”.

Examples

The following expressions are examples of using the NPV function:

 

Expression	Returns
NPV(0.065, 5000)	4694.83568075117, which is the net present value of an investment earning 6.5% per year that will generate $5000.
NPV(0.10, 500, 1500, 4000, 10000)	11529.60863329007, which is the net present value of an investment earning 10% a year that will generate $500, $1500, $4000, and $10,000 in each of the next four years.
NPV(0.0275 / 12, 50, 60, 40, 100, 25)	273.14193838457, which is the net present value of an investment earning 2.75% year that will generate $50, $60, $40, $100, and $25 in each of the next five months.

NPV