The general formula for Net Present Value(NPV) comes Present Value(PV)and the formula for it is PV=FV/(1+Discount Rate)^n where is n=no.of years .and then the NPV=PV+(Investment made)

How is 'n' calculated in Excel as the formula here is =NPV(Dis Rate,FCF)

How is 'n' calculated in Excel as the formula here is =NPV(Dis Rate,FCF)

Jun 09 2013 05:29 PM

Excel will assume n based on the number of cash flows you enter

If you have 2 cash flows then n = 2

If you have 5 cash flows then n=5

Jun 14 2013 10:39 AM
If you have 2 cash flows then n = 2

If you have 5 cash flows then n=5