The Excel NPV function is used to return the net present value of an investment based on a series of cash flows and a discount rate.
The syntax for the NPV function is:
=NPV(rate, value1, [value2], …)
| Argument | Purpose |
|---|---|
| rate | Discount rate during one period of the investment |
| value | Payments made each period. Payments made in the past should have a negative value, and payments made in the future should be positive. This argument can take up to 29 values |
The example below shows the NPV function being used to return the net present value for an investment with a discount rate of 6% and payments in range B3:B8.
