NPV

Returns the net present value of an investment based on a discount rate and a series of periodic future cash flows.

Note: Interest rate calculation methods differ from country to country. This function calculates an interest rate based on U.S. interest rate standards.

Syntax

NPV(n1, n2 [, ...])

Parameters

Parameter	Description
`n1`	A numeric value or expression representing the discount rate over a single period.
`n2`	A numeric value or expression representing a cash flow value, which must occur at the end of a period. It is important that the values specified in `n2` and beyond are in the correct sequence.

The function returns an error if n1 is negative or 0. If any of the parameters are null, the function returns null.

Note: FormCalc follows the IEEE-754 international standard when handling floating point numeric values. For more information, see Number literals.

Examples

The following expressions are examples that use the NPV function:

Expression	Returns
`NPV(0.065, 5000)`	`4694.83568075117`, which is the net present value of an investment earning 6.5% per year that will generate $5000.
`NPV(0.10, 500, 1500, 4000, 10000)`	`11529.60863329007`, which is the net present value of an investment earning 10% a year that will generate $500, $1500, $4000, and $10,000 in each of the next four years.
`NPV(0.0275 / 12, 50, 60, 40, 100, 25)`	`273.14193838457`, which is the net present value of an investment earning 2.75% year that will generate $50, $60, $40, $100, and $25 in each of the next five months.