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NPV Function

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], …)

ArgumentPurpose
rateDiscount rate during one period of the investment
valuePayments 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.

Excel NPV function to return the net present value

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