# XNPV - XNPV Warning XNPV will not discount the first cash...

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XNPV Warning: XNPV will not discount the first cash flow you point it to (irrespective of the date attached In other words, XNPV assumes that the first cash flow happens today, regardless of whether you ha If you are using XNPV, you need to think about how you want the calculations working - most likely Conclusion: may be better to abandon XNPV and run these calculations manually. May be a bit long Example i) - project starts approx a year from now XNPV function discounts cash flows to 30-Jun-17 Valuation date = 30-Jun-17 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 Project cash flows 0 15 25 35 45 Initial investment (100) 0 0 0 0 Total cash flows (100) 15 25 35 45 Hurdle discount rate 8.0% NPV of positive cash flows 175 NPV of initial investment Err:502 Note: XNPV does not discount the first cash flow you point it to. Total NPV 75 Err:502 Example ii) - project delayed by a year XNPV function discounts cash flows to 30-Jun-18 Valuation date = 30-Jun-18 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 Project cash flows 0 15 25 35 45 Initial investment (100) 0

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