NPV (net present value)
NPV Function
Computes the net present value of an investment by using a discount rate and a series of future payments (negative values) and income (positive values).
Syntax
NPV(scalar Rate, vector Payments)
Arguments
| Argument | Description |
|---|---|
scalar Rate | Discount rate over the term of a single period |
vector Payments | Series of numbers representing payments (negative numbers) and income (positive numbers) which are at the end of periods that are equally spaced in time. |
Examples:
NPV(8/100,array(-7500,3000, 5000, 1200, 4000))
Above income for the first four years: $3000, $5000, $1200 and $4000. An annual discount rate 8% is used.