Advanced Excel Financial - XNPV Function

Description

The XNPV function returns the net present value for a schedule of cash flows that is not necessarily periodic. To calculate the net present value for a series of cash flows that is periodic, use the NPV function.

Syntax

XNPV (rate, values, dates)

Arguments

Notes

• The first payment is optional and corresponds to a cost or payment that occurs at the beginning of the investment.

• If the first value is a cost or payment, it must be a negative value.

• All succeeding payments are discounted based on a 365-day year.

• The first payment date indicates the beginning of the schedule of payments.

• All other dates must be later than this date, but they may occur in any order.

• The series of values must contain at least one positive value and one negative value.

• Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.

• Numbers in dates are truncated to integers.

• If any number in dates is not a valid Excel date, XNPV returns the #VALUE! error value.

• If any number in dates precedes the starting date, XNPV returns the #NUM! error value.

• If values and dates contain a different number of values, XNPV returns the #NUM! error value.

• XNPV is calculated as follows −

  $$XNPV = \sum_{i=1}^{N} \frac{P_i}{\left ( 1 + rate \right )^{\frac{\left ( d_i - d_1 \right )}{365}}}$$

  Where,

  d_i = the ith, or last, payment date.

  d₁ = the 0th payment date.

  P_i = the ith, or last, payment.

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example