Functions
NPV
Net present value
Try it
When to use it
When should I use NPV instead of PV?
Use NPV when cash flows vary period to period; use PV when the payments are equal and periodic.
Does NPV include the initial investment at time zero?
No. NPV discounts the first value as if it occurs one period from now, so subtract or add the upfront cost outside the function if it happens today.
Use cases
Discount uneven annual returns at 8 percent
Account for an upfront cost paid today
Used in
Syntax
NPV(rate, value1,...)Examples
=NPV(0.08,200,250,300) // => 637.6695625666819