NPV()

Syntax. NPV(Rate,Value1,Value2, ...)

Definition. This function calculates the net cash value of future period surpluses (cash flow) of an investment based on a given calculation interest rate.

Arguments

  • Rate (required) The calculation interest rate supplied by the investor.

  • Value1,Value2,... (required) The (actual and expected) surpluses from disbursements and deposits, arranged without gaps in a column. Each value represents the end of a period (usually one year) in ascending order and without gaps. Negative surpluses have a minus sign.

    If the cells of the Value argument do not contain numbers or are empty, Excel calculates as if these cells didn’t exist. This is also the case if cell references in the argument refer to such cells.

Background ...

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