The Excel XNPV function is a financial function that calculates the net present value (NPV) of an investment using a discount rate and a series of cash flows that occur at irregular intervals.
Calculate net present value for irregular cash flows
Net present value
=XNPV (rate, values, dates)
rate - Discount rate to apply to the cash flows.
values - Values representing cash flows.
dates - Dates that correspond to cash flows.
The Excel XNPV function calculates the net present value (NPV) of an investment based on a discount rate and a series of cash flows that occur at irregular intervals. Cash flows need to be listed with dates in chronological order. Negative values represent cash paid out; positive values represent cash received.In the example shown, the formula in F6 is:
XNPV doesn’t discount the initial cash flow. Subsequent payments are discounted based on a 365-day year. To discount to a particular valuation date, you can set up XNPV so that the first cashflow is zero, associated with the valuation date.
The Excel PV function is a financial function that returns the present value of an investment. You can use the PV function to get the value in today's dollars of a series of future payments, assuming periodic, constant payments and a constant...