# NPV

### Definition of NPV:

This formula calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

### Sample Usage

`NPV(0.08,200,250,300)`

`NPV(A2,A3,A4,A5)`

### Syntax

`NPV(discount, cashflow1, [cashflow2, ...])`

`discount`

- The discount rate of the investment over one period.

`cashflow1`

- The first future cash flow.

`cashflow2, ...`

-**[**OPTIONAL**]**- Additional future cash flows.

### Notes

- Each
`cashflow`

argument should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment).

- Each
`cashflow`

argument may be either a value, a reference to a value, or a range containing values. Cashflows are considered in the order they are referenced.

`IRR`

under the same conditions calculates the internal rate of return for which the net present value is zero.

- If the cash flows of an investment are irregularly spaced, use
`XNPV`

instead.

### See Also

XNPV: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.

XIRR: Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.

`PV`

: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

`MIRR`

: Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.

`IRR`

: Calculates the internal rate of return on an investment based on a series of periodic cash flows.

**Step 1. **To use the NPV Formula, **start with the Excellentable you would like to edit.**

**Step 2. Then type the NPV** **formula into the cell you have chosen to display the outcome:**

**Step 3. Fill in the 4 values- In this example I have chosen 4 values that are the same. **

**Step 4. Once saved, your completed formula will display in a confluence page like this. **