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Calculate Net Present Value Method

The Calculate Net Present Value method calculates, and then returns the net present value of an investment according to a stream of periodic cash flows and a constant interest rate. This method does the following:

• Returns the net present value in the valuearray argument according to the value that the rate argument contains.
• Uses future cash flows as the basis for the net present value calculation. If the first cash flow occurs at the beginning of the first period, then you must add this cash flow value to the result that this method returns. You must not include this value in the valuearray argument.

The value that the rate argument contains is the decimal equivalent of the discount rate. For example, if the discount rate is 12%, then the rate is 0.12.

Format

NPV(rate, valuearray( ))

The rate argument for this method describes the discount rate for each period. For a description of the valuearray argument, see Arguments You Can Use with Financial Methods.