NPV

Syntax

NPV (Dimension, Rate, Cash Flow, {Type},{Condition})

Description

The NPV function returns the Net Present Value for Cash Flow, where Rate is the rate per period. If Type is zero or omitted, NPV treats the investment as an ordinary annuity; otherwise, NPV treats the investment as an annuity due. If Condition is omitted, the function uses all values of Cash Flow. If Condition is included, the function uses only those values of Cash Flow for which Condition is true.

The initial values in the cash flow should be negative to represent a cash outflow. The remaining values may be all positive (representing cash inflows), or a combination of positive and negative values.

Example

You can create a data cube called NET_PRESENT_VALUE and calculate the net present value for a data cube called CASH_FLOW with the following formula:

NPV(MONTHS, ANNUAL_RATE / 12, CASH_FLOW)

You can calculate the net present value for the first 12 months with the following formula:

NPV(MONTHS, ANNUAL_RATE / 12, CASH_FLOW, 0, MEMBER(MONTHS) <= 12)

The Condition ensures that the NPV function uses only those values for which the month index is 12 or less.