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NetPV Function
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This function calculates NPV in a manner that is consistent with the Excel IRR function
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It is also possible to implement the half-year convention by setting the last optional parameter to 1. (See Below)
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Here are the inputs and form of the function:
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=NETPV(R,Cashflows,Optional HalfYear)
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Present Value Example
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Required Inputs
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R: is the discount rate
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Cashflows: Are a vector of cashflows
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Optional HalfYear: To use the half year convention set this value to 1
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Spreadsheet View
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Example
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10.00%
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$-985 …$1200
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Blank, 0, or 1
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Row/Col
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B
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C
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D
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E
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F
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G
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17
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Discount Rate
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10.00%
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18
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0
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1
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2
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3
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4
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19
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Cashflows
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-$985
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$75
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$120
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$100
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$1,200
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20
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21
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Using the NetPV functions
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Contents of left Cell
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22
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$77.10
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=NETPV(C17,C19:G19,0)
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23
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$128.94
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=NETPV(C17,C19:G19,1)
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24
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Using the NPV functions
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25
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$77.10
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=NPV(C17,D19:G19)+C19
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26
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$128.94
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=NPV(C17,D19:G19)*(1+C17)^0.5+C19
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27
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28
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$77.10
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=NETPV(C17,C19:G19)
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29
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30
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31
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