Microsoft Office Tutorials and References

In Depth Information

**Using XNPV to Calculate the Net Present Value When the Payments Are Not Periodic**

vestment. If the first value is a cost or payment, it must be a negative

value. All succeeding payments are discounted based on a 365-day

year. The series of values must contain at least one positive value

and one negative value.

•
dates

dates
—
This is a schedule of payment dates that corresponds to the

cash flow payments. The first payment date indicates the beginning of

the schedule of payments. All other dates must be later than this

date, but they may occur in any order. Only dates are considered; any

times appended to the dates are truncated.

If any argument is nonnumeric, XNPV returns a #VALUE! error. If any number

in dates is not a valid date, XNPV returns a #NUM! error. If any number in

dates precedes the starting date, XNPV returns a #NUM! error. If valuesand

datescontain different numbers of values, XNPV returns a #NUM! error.

In
Figure 13.15
,
the company was purchased on March 15, 2010. The company

posted no net profit in 2010. The company was sold in February 2015. The

XNPVfunction in row 9 shows that this deal clearly beat the 3% hurdle rate.