NPV Function
Microsoft.VisualBasic.Financial
NPV(rate
,valuearray
( ) )
rate
(required; Double)The discount rate over the period, expressed as a decimal
valuearray
( ) (required; Double)An array of cash flow values
A Double specifying the net present value
Calculates the net present value of an investment based on a series of periodic variable cash flows (payments and receipts) and a discount rate
The net present value is the value today of a series of future cash flows discounted at some rate back to the first day of the investment period.
rate
must be a percentage expressed as a
decimal. For example, 10% is expressed as 0.10.
values
is a one-dimensional array that
must contain at least one negative value (a payment) and one positive
value (a receipt).
The NPV investment begins one period before the date of the first cash flow value and ends with the last cash flow value in the array.
NPV requires future cash flows. If the first
cash flow occurs at the beginning of the first period, the first
value must be added to the value returned by NPV
and must not be included in values
.
rate
and the individual elements of
values
must reflect the same time period.
For example, if values
reflects annual
cash flows, rate
must be the annual
discount rate.
Individual members of values
are
interpreted sequentially. That is,
values(0)
is the first cash flow,
values(1)
is the second, etc.
NPV is like the PV function, ...
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