Excel Function : NPV

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Excel Function : NPV

Category

Financial

Description

Returns the net present value of an investment based on a series of periodic cash flows and a discount rate

Microsoft Excel Reference Page

https://support.office.com/en-us/article/NPV-function-8672cb67-2576-4d07-b67b-ac28acf2a568

Syntax and Description of the NPV Excel Function

=NPV(rate, value1, value2, ...)

About NPV Excel Function

The Net Present Value (NPV) function in Excel calculates the present value of an investment based on a discount, or interest, rate and a series of future cash flows. The NPV function can be used to determine whether an investment is worth pursuing, as it discounts all future cash flows to the present day and sums them up. A positive NPV indicates that an investment is worth pursuing, as it will result in a positive return. A negative NPV indicates that an investment is not worth pursuing, as it will result in a negative return.