NPV


Returns the net present value of an investment with regular cash payments.

Syntax:

NPV(discountrate, payment1, payment2, ... payment30)

payment1 to payment30 are up to 30 numbers or ranges containing numbers, representing payments made at the end of each of a series of fixed length periods. The payments may be both positive and negative, for income and outgoing.
discountrate is the discount rate (expressed as a fraction of 1) which you consider applies to one single period. It is assumed to be constant for all periods.

NPV calculates the net present value using the formula:

Example:

NPV(8.75%, 1000, 2000, 3000)
where the discount rate 8.75% is the assumed competitive return over one year, and 1000 is to be paid at the end of year 1, 2000 at the end of year 2 and 3000 at the end of year 3, returns 4943.21 as currency.
NPV(0.0875, A1:A3)
where cells A1:A3 contain 1000, 2000 and 3000, returns 4943.21 similarly.






 
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