NPV

Syntax: NPV(R, CF)

R = periodic interest rate
CF = future cash flow series represented by a range

NPV returns the present value of a series of future cash flows, CF, at a given rate R. The function is given by:

$$\sum_{i=1}^N \frac{{\it CF}_i}{(1+R)^i}$$

Blanks and text are treated as zeros.

Examples:

NPV(.095, C3..C8) = 287.29, where the interest rate is 9.5% and the future cash flow is in the range C3..C8 and are each $65

NPV(.10, C3) = Error! cash flow series must be a range

Excel function: N/A