



NetPV Function




This function calculates NPV in a manner that is consistent with the Excel IRR function




It is also possible to implement the halfyear convention by setting the last optional parameter to 1. (See Below)




Here are the inputs and form of the function:




=NETPV(R,Cashflows,Optional HalfYear)








Present Value Example




Required Inputs




R: is the discount rate




Cashflows: Are a vector of cashflows




Optional HalfYear: To use the half year convention set this value to 1



Spreadsheet View







Example




10.00%




$985 …$1200



Blank, 0, or 1





Row/Col

B

C

D

E

F

G


17

Discount Rate

10.00%






18


0

1

2

3

4


19

Cashflows

$985

$75

$120

$100

$1,200


20








21

Using the NetPV functions

Contents of left Cell




22

$77.10

=NETPV(C17,C19:G19,0)




23

$128.94

=NETPV(C17,C19:G19,1)




24

Using the NPV functions







25

$77.10

=NPV(C17,D19:G19)+C19




26

$128.94

=NPV(C17,D19:G19)*(1+C17)^0.5+C19


27








28

$77.10

=NETPV(C17,C19:G19)




29








30








31









