Formulas and Functions Help
- Welcome
- Intro to formulas and functions
-
- ACCRINT
- ACCRINTM
- BONDDURATION
- BONDMDURATION
- COUPDAYBS
- COUPDAYS
- COUPDAYSNC
- COUPNUM
- CUMIPMT
- CUMPRINC
- CURRENCY
- CURRENCYCODE
- CURRENCYCONVERT
- CURRENCYH
- DB
- DDB
- DISC
- EFFECT
- FV
- INTRATE
- IPMT
- IRR
- ISPMT
- MIRR
- NOMINAL
- NPER
- NPV
- PMT
- PPMT
- PRICE
- PRICEDISC
- PRICEMAT
- PV
- RATE
- RECEIVED
- SLN
- STOCK
- STOCKH
- SYD
- VDB
- XIRR
- XNPV
- YIELD
- YIELDDISC
- YIELDMAT
-
- AVEDEV
- AVERAGE
- AVERAGEA
- AVERAGEIF
- AVERAGEIFS
- BETADIST
- BETAINV
- BINOMDIST
- CHIDIST
- CHIINV
- CHITEST
- CONFIDENCE
- CORREL
- COUNT
- COUNTA
- COUNTBLANK
- COUNTIF
- COUNTIFS
- COVAR
- CRITBINOM
- DEVSQ
- EXPONDIST
- FDIST
- FINV
- FORECAST
- FREQUENCY
- GAMMADIST
- GAMMAINV
- GAMMALN
- GEOMEAN
- HARMEAN
- INTERCEPT
- LARGE
- LINEST
- LOGINV
- LOGNORMDIST
- MAX
- MAXA
- MAXIFS
- MEDIAN
- MIN
- MINA
- MINIFS
- MODE
- NEGBINOMDIST
- NORMDIST
- NORMINV
- NORMSDIST
- NORMSINV
- PERCENTILE
- PERCENTRANK
- PERMUT
- POISSON
- PROB
- QUARTILE
- RANK
- SLOPE
- SMALL
- STANDARDIZE
- STDEV
- STDEVA
- STDEVP
- STDEVPA
- TDIST
- TINV
- TTEST
- VAR
- VARA
- VARP
- VARPA
- WEIBULL
- ZTEST
NPV
The NPV function returns the net present value of an investment based on a series of potentially irregular cash flows that occur at regular time intervals. All arguments are number values.
NPV(periodic-discount-rate, cash-flow, cash-flow…)
periodic-discount-rate: The discount rate per period. periodic-discount-rate is entered as a decimal (for example, 0.08) or with a per cent sign (for example, 8%). periodic-discount-rate must be greater than or equal to 0. periodic-discount-rate is specified using the same time frame as that used for the cash flows. For example, if the cash flows are monthly and the desired annual discount rate is 8%, periodic-discount-rate must be specified as 0.00667 or 0.667% (0.08 divided by 12).
cash-flow: A cash flow. A positive value represents income (cash inflow). A negative value represents an expenditure (cash outflow). Cash flows must be equally spaced in time.
cash-flow…: Optionally include one or more additional cash flows.
Notes
The currency shown in this function result depends on your Language & Region settings (in System Preferences in macOS and in Settings in iOS and iPadOS), or on your Time Zone & Region settings in iCloud Settings.
Example |
|---|
Suppose you are presented with the opportunity to invest in a partnership. Because the partnership is still developing its product, an additional £25,000 and £10,000 must be invested at the end of the first and second years (negative cashflows), respectively. In the third year, the partnership expects to be self-funding but not return any cash to investors (0 cashflow). In the fourth and fifth years, investors are projected to receive £10,000 and £30,000 (positive cashflows), respectively. At the end of the sixth year, the company expects to sell and investors are projected to receive £100,000 (positive cashflow). In order to invest, you want to achieve an annual return of at least 10%. =NPV(0.10, –25000, –10000, 0, 10000, 30000, 100000) returns £50,913.43, the net present value of the cash flows at 10%. Therefore, if the required initial investment is this amount or less, this opportunity meets your 10% goal. |