NPV Calc

  • I am trying to create a function to calculate the NPV based on X periods of equal cashflow.

    Obviously the NPV function works as = NPV(10%,cashflow1, cashflow2, cashflow3.........) etc.

    I wish the function be like so : function NPV_D (Rate, total_cashflow, periods)

    Each months cash flow would be total_cashflow/term so equal.

    The problem come in that the equal cashflow could range from say 6 months to 62 months.

    What is the best way to do this. Am I correct in assuming that I will need to use an array ?

    Any help most appreciated - even to be pointed in the right direction woul be great.



  • Re: NPV Calc

    Surely you can use the PV function if your payments are fixed



    Will return the present value of 5 annual future payments of £1000 and would equate to the same answer as the following using NPV


    Does this help ?

    NB, for monthly payments, the interest rate would be divided by 12 to get a monthly rate. The years the money is paid out should be multiplied by 12 to get the correct number of payments.

  • Re: NPV Calc

    Yes thats great - Thanks !!!

    One further question though -

    What about if I wanted use unequal payments.

    Ie Total cashflow = 1000

    Eg in month1 = (12/78)*1000
    Month 2 = (11/78)*1000
    Month3 = (10/78)*1000

    Using Rule of 78. This could once again be between anything from 6months to 62 months.

    Once again any help appreciated.

  • Re: NPV Calc

    Thanks for that, but it doesn't show me exactly what I want.

    Essentially I need to be able to feed values into the NPV calc. How many values go into thsi calc depends on the term. So, 12 months would have 12 values. 6 montsh would only have six values etc. This is why I wondered if I would have to use an array to do this ?

    Am I explaining myself properly ????

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