This article will explain how to use npv in excel. XNPV is a function that calculates the net present value of an investment based on future cash flows and discounts them to their current values.
This function is available in Excel 2010 and above.
To use the XNPV function, you will need to input the following information:
– The cash flow series (this can be an array or a range of cells)
– The discount rate (the interest rate that you are using to calculate npv)
– The number of periods for which you want to calculate npv
The XNPV function will return the net present value for the given inputs. If there are no future cash flows, then npv will return #NUM! error.
Here is an example of how to use the XNPV function: Suppose you are considering investing in a new company. You have estimated that the company will generate $100,000 in cash flow each year for the next five years. You want to know the net present value of this investment, so you use the XNPV function with a discount rate of 15%. The number of periods is set to five since that is how many years the cash flows will last.
The result of the npv calculation will be $12,585. This means that if you invest in this company, your expected return would be 12.59% on your original investment.
You can also use Excel’s Goal Seek feature to calculate npv. To do this, you would need to input the following information:
– The cash flow series (this can be an array or a range of cells)
– The number of periods for which npv has been calculated
– A guess on npv (this can be a random amount or an educated estimate)
Goal Seek will then return the discount rate that you need to use in order to obtain npv as close as possible to your desired amount. If npv is less than 0, Goal Seek will return an error.
npv calculation on excel, excel npv calculation, formula for npv calculation, xnpv function in excel, how to use npv in excel, goal seek feature in excel, net present value of investment calculator, calculate npv with excel spreadsheet.
– The cash flow series (this can be an array or a range of cells)
– The discount rate (the interest rate that you are using to calculate npv)
– The number of periods for which you want to calculate npv
Party Investors 