NPV calculation?

enisthemenace

Well-Known Member
Dec 5, 2009
12,961
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Runnells, IA
Let me try this another way. I appreciate all the help, but I’m still struggling. I have been able to simulate the original example, but now I need to somehow get this to work on 1,000 more rows.

Here is what I have by column.

A: Number of years (this ranges from 1 - 50)
B: Rate (doesn’t matter what I put in here, as long as it’s a percentage)
C: Amount (ranges from $0.35 - $26,093.48)
D: this is where I want the NPV to end up

So, is there a function I can use with these corresponding cell letters to get me what I need, or no?

=NPV(B, SUM(C*A)) doesn’t work
 

Rabbuk

Well-Known Member
Mar 1, 2011
55,329
42,782
113
Let me try this another way. I appreciate all the help, but I’m still struggling. I have been able to simulate the original example, but now I need to somehow get this to work on 1,000 more rows.

Here is what I have by column.

A: Number of years (this ranges from 1 - 50)
B: Rate (doesn’t matter what I put in here, as long as it’s a percentage)
C: Amount (ranges from $0.35 - $26,093.48)
D: this is where I want the NPV to end up

So, is there a function I can use with these corresponding cell letters to get me what I need, or no?

=NPV(B, SUM(C*A)) doesn’t work
https://answers.microsoft.com/en-us...function/d7987138-4af9-4225-9510-49f57f2f19ea
 

enisthemenace

Well-Known Member
Dec 5, 2009
12,961
8,652
113
Runnells, IA
I think I figured it out. It’s “ugly” and required a second worksheet, plus a lot of “copy and paste”, but it is what it is.

Thanks All.
 

sunset

Well-Known Member
Oct 18, 2006
2,833
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San Diego, CA
Why use excel functions when the actual formula is so simple? As already mentioned, Excel functions have trouble with cash flows switching from positive to negative and back (try an IRR function under this scenario and see what interesting solutions you receive) and also have trouble with irregular timing (i.e. cash flows on an annual basis shifting to semi-annual or one payment in October instead of December). The time value of money formula will allow you to derive just about any NPV solution you need: FV = PV (1.r)^n. From there it's simple math to get to annuity/perpetuity/irregular-cashflow PV solutions.
 

enisthemenace

Well-Known Member
Dec 5, 2009
12,961
8,652
113
Runnells, IA
Why use excel functions when the actual formula is so simple? As already mentioned, Excel functions have trouble with cash flows switching from positive to negative and back (try an IRR function under this scenario and see what interesting solutions you receive) and also have trouble with irregular timing (i.e. cash flows on an annual basis shifting to semi-annual or one payment in October instead of December). The time value of money formula will allow you to derive just about any NPV solution you need: FV = PV (1.r)^n. From there it's simple math to get to annuity/perpetuity/irregular-cashflow PV solutions.

I’ll try it again, but it wasn’t working out before. Thanks though.
 

sunset

Well-Known Member
Oct 18, 2006
2,833
1,008
113
San Diego, CA
I’ll try it again, but it wasn’t working out before. Thanks though.

Was meant more as a general comment, not a critique of your situation. Sorry if it came across otherwise. Somebody earlier had a string of formulas across years, that is the method I would use. Good luck.
 

enisthemenace

Well-Known Member
Dec 5, 2009
12,961
8,652
113
Runnells, IA
Was meant more as a general comment, not a critique of your situation. Sorry if it came across otherwise. Somebody earlier had a string of formulas across years, that is the method I would use. Good luck.

No worries. I appreciate the help in the thread, including yours. Thanks.
 

cyfanatic13

Well-Known Member
SuperFanatic
SuperFanatic T2
Dec 19, 2008
11,115
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Haven't read anyone else's response yet but doing some quick mental math in my head I'm getting a total of roughly $113,236.76