NPV
Returns the net present value (NPV) of a series of unequal payments made at regular intervals, assuming a fixed interest rate per interval.
Format
NPV ( payment ; interestRate )
Parameters
payment - a repeating field containing unequal payment amounts, or an expression that returns a reference to one.
interestRate - interest rate.
Data type returned
number
Originated in version
6.0 or earlier
Description
Use this function to calculate NPV. For example, if someone borrows money from you and pays you back in unequal amounts over a period of several years, you can use the NPV function to calculate the result.
Example 1
NPV(Loan;.05) returns 156.91277445..., when the repeating field, Loan, contains -2000 (the initial payment), 600, 300, 500, 700, and 400. The result (156.91277445...) is the actual profit in today’s dollars that will be realized from this transaction.
Example 2
NPV(Amounts;.10) returns 16758.35604870..., when the repeating field, Amounts, contains -5000 (the initial investment), 10,000, 0, 10,000, and 10,000.