# npv - Net Present Value NPV The net present value of a...

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Net Present Value – NPV The net present value of a series of cash flows can be calculated using Excel's NPV function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. Syntax =NPV(rate,value1,value2,….value29) Rate – discount rate or interest rate Value – periodic payments where individual amounts differ - must be equally spaced in time and be at the end of each period General Example The following general example shows how the NPV function can be used. Notice that the NPV function appears in the formula bar. 1

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Using the NPV Function in a Spreadsheet To calculate the net present value of a series of cash flows, create a spreadsheet by following Steps 1 to 7. Or, to use the NPV function right away, open the NPV worksheet in the Excel Functions Templates workbook. All fields have been formatted for you (currency, percentage, number of decimals displayed). Step 1 : Enter NPV Function in cell A1. You will replace NPV Function with your project title when you use your spreadsheet for a particular question or situation. Step 2
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## This note was uploaded on 08/22/2009 for the course MATH 1101 taught by Professor Tonycirusolo during the Fall '05 term at Niagara College.

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npv - Net Present Value NPV The net present value of a...

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