The Excel XNPV function calculates the Net Present Value for a schedule of cash flows that is not necessarily periodic.
The syntax of the function is:
Where the arguments are listed in the table below:
|rate||-||The discount rate to apply to the cash flows.|
|dates||-||An array of dates corresponding to the array of payments. This array must be the same length as the supplied values array.|
In the above spreadsheet on the right the Xnpv function is used to calculate the net present value of a series of cashflows.
The discounted rate is shown in cell B1 of the spreadsheet, the dates of the returns are stored in cells A2-A7 and the values of the returns are stored in cells B2-B7.
The syntax of the Xnpv function is shown in cell C10.
This function gives the result $4,449.60
Further information and examples of the Excel Xnpv function can be found on the Microsoft Office website.
If you get an error from the Excel Xnpv function this is likely to be one of the following:
Occurs when Analysis ToolPak add-in is not enabled in your Excel.