Excel - Microsoft Excel NPV Function

Description

The Excel NPV function calculates the Net Present Value of an investment, based on a supplied discount rate, and a series of future payments and income. 

The format of the function is : 

NPV( rate, value1, [value2], [value3], ... ) 

Where the arguments are as follows : 

Also note that in Excel 2007, you can provide up to 254 payment and income values to the Npv function, but in Excel 2003, you can only provide up to 29 values. 

NPV Function Example

The spreadsheet on the right shows an example of the NPV function. The data used is shown in cells A1 - A7 of the spreadsheet and the NPV function is shown in cell B10. 

This function gives the result $2,678.68