WorksheetFunction.Npv Method
Definition
Important
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Calculates the net present value of an investment by using a discount rate and a series of future payments (negative values) and income (positive values).
public double Npv (double Arg1, object Arg2, object Arg3, object Arg4, object Arg5, object Arg6, object Arg7, object Arg8, object Arg9, object Arg10, object Arg11, object Arg12, object Arg13, object Arg14, object Arg15, object Arg16, object Arg17, object Arg18, object Arg19, object Arg20, object Arg21, object Arg22, object Arg23, object Arg24, object Arg25, object Arg26, object Arg27, object Arg28, object Arg29, object Arg30);Public Function Npv (Arg1 As Double, Arg2 As Object, Optional Arg3 As Object, Optional Arg4 As Object, Optional Arg5 As Object, Optional Arg6 As Object, Optional Arg7 As Object, Optional Arg8 As Object, Optional Arg9 As Object, Optional Arg10 As Object, Optional Arg11 As Object, Optional Arg12 As Object, Optional Arg13 As Object, Optional Arg14 As Object, Optional Arg15 As Object, Optional Arg16 As Object, Optional Arg17 As Object, Optional Arg18 As Object, Optional Arg19 As Object, Optional Arg20 As Object, Optional Arg21 As Object, Optional Arg22 As Object, Optional Arg23 As Object, Optional Arg24 As Object, Optional Arg25 As Object, Optional Arg26 As Object, Optional Arg27 As Object, Optional Arg28 As Object, Optional Arg29 As Object, Optional Arg30 As Object) As DoubleParameters
- Arg1
- Double
Rate - the rate of discount over the length of one period.
- Arg2
- Object
Value1, value2, ... - 1 to 29 arguments representing the payments and income.
- Arg3
- Object
- Arg4
- Object
- Arg5
- Object
- Arg6
- Object
- Arg7
- Object
- Arg8
- Object
- Arg9
- Object
- Arg10
- Object
- Arg11
- Object
- Arg12
- Object
- Arg13
- Object
- Arg14
- Object
- Arg15
- Object
- Arg16
- Object
- Arg17
- Object
- Arg18
- Object
- Arg19
- Object
- Arg20
- Object
- Arg21
- Object
- Arg22
- Object
- Arg23
- Object
- Arg24
- Object
- Arg25
- Object
- Arg26
- Object
- Arg27
- Object
- Arg28
- Object
- Arg29
- Object
- Arg30
- Object
Returns
Remarks
Value1, value2, ... must be equally spaced in time and occur at the end of each period.
Npv uses the order of value1, value2, ... to interpret the order of cash flows. Be sure to enter your payment and income values in the correct sequence.
Arguments that are numbers, empty cells, logical values, or text representations of numbers are counted; arguments that are error values or text that cannot be translated into numbers are ignored.
If an argument is an array or reference, only numbers in that array or reference are counted. Empty cells, logical values, text, or error values in the array or reference are ignored.
The Npv investment begins one period before the date of the value1 cash flow and ends with the last cash flow in the list. The Npv calculation is based on future cash flows. If your first cash flow occurs at the beginning of the first period, the first value must be added to the Npv result, not included in the values arguments. For more information, see the examples below.
If n is the number of cash flows in the list of values, the formula for Npv is:
Figure 1: Formula for the Npv method
Npv is similar to the Pv(Double, Double, Double, Object, Object) function (present value). The primary difference between PV and Npv is that Pv(Double, Double, Double, Object, Object) allows cash flows to begin either at the end or at the beginning of the period. Unlike the variable Npv cash flow values, Pv(Double, Double, Double, Object, Object) cash flows must be constant throughout the investment. For information about annuities and financial functions, see Pv(Double, Double, Double, Object, Object).
Npv is also related to the Irr(Object, Object) function (internal rate of return). Irr(Object, Object) is the rate for which Npv equals zero: NPV(IRR(...), ...) = 0.