Difference between revisions of "Documentation/How Tos/Calc: NPV function"
From Apache OpenOffice Wiki
< Documentation | How Tos
(→See also:) |
OOoWikiBot (Talk | contribs) m (Robot: Automated text replacement %s) |
||
Line 22: | Line 22: | ||
: where cells A1:A3 contain <tt>'''1000'''</tt>, <tt>'''2000'''</tt> and <tt>'''3000'''</tt>, returns <tt>'''4943.21'''</tt> similarly. | : where cells A1:A3 contain <tt>'''1000'''</tt>, <tt>'''2000'''</tt> and <tt>'''3000'''</tt>, returns <tt>'''4943.21'''</tt> similarly. | ||
− | + | {{Documentation/SeeAlso| | |
− | [[Documentation/How_Tos/Calc: IRR function| | + | * [[Documentation/How_Tos/Calc: IRR function|IRR]], |
− | [[Documentation/How_Tos/Calc: MIRR function| | + | * [[Documentation/How_Tos/Calc: MIRR function|MIRR]], |
− | [[Documentation/How_Tos/Calc: XIRR function| | + | * [[Documentation/How_Tos/Calc: XIRR function|XIRR]], |
− | [[Documentation/How_Tos/Calc: XNPV function| | + | * [[Documentation/How_Tos/Calc: XNPV function|XNPV]], |
− | [[Documentation/How_Tos/Calc: PV function| | + | * [[Documentation/How_Tos/Calc: PV function|PV]] |
− | [[Documentation/How_Tos/Calc: Financial functions| | + | * [[Documentation/How_Tos/Calc: Financial functions|Financial functions]] |
− | [[Documentation/How_Tos/Calc: Functions listed alphabetically| | + | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] |
− | [[Documentation/How_Tos/Calc: Functions listed by category| | + | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} |
=== Issues: === | === Issues: === | ||
* The discount rate chosen is assumed to compound each period. If the period is say one month, and you wish to calculate using a competitive return known over one year, you might choose a discount rate of a twelfth of the competitive return - but be aware that this is not absolutely accurate. There is no simple formula. | * The discount rate chosen is assumed to compound each period. If the period is say one month, and you wish to calculate using a competitive return known over one year, you might choose a discount rate of a twelfth of the competitive return - but be aware that this is not absolutely accurate. There is no simple formula. |
Revision as of 14:08, 25 February 2009
NPV
Returns the net present value of an investment with regular cash payments.
Syntax:
NPV(discountrate; payment1; payment2; ... payment30)
- payment1 to payment30 are up to 30 numbers or ranges containing numbers, representing payments made at the end of each of a series of fixed length periods. The payments may be both positive and negative, for income and outgoing.
- discountrate is the discount rate (expressed as a fraction of 1) which you consider applies to one single period. It is assumed to be constant for all periods.
- NPV calculates the net present value using the formula:
Example:
NPV(8.75%; 1000; 2000; 3000)
- where the discount rate 8.75% is the assumed competitive return over one year, and 1000 is to be paid at the end of year 1, 2000 at the end of year 2 and 3000 at the end of year 3, returns 4943.21 as currency.
NPV(0.0875; A1:A3)
- where cells A1:A3 contain 1000, 2000 and 3000, returns 4943.21 similarly.
Template:Documentation/SeeAlso
Issues:
- The discount rate chosen is assumed to compound each period. If the period is say one month, and you wish to calculate using a competitive return known over one year, you might choose a discount rate of a twelfth of the competitive return - but be aware that this is not absolutely accurate. There is no simple formula.