Returns the net present value as a percent.

Category: | Financial |

is numeric, the interest rate over a specified base period of time expressed as a fraction.

Range | r >= 0 |

is numeric, the number of payments during the base period of time that is specified with the rate r.

Range | freq > 0 |

Note | The case freq = 0 is a flag to allow continuous discounting. |

are numeric cash flows that represent cash outlays (payments) or cash inflows (income) occurring at times 0, 1, ...n. These cash flows are assumed to be equally spaced, beginning-of-period values. Negative values represent payments, positive values represent income, and values of 0 represent no cash flow at a given time. The c0 argument and the c1 argument are required.

The NETPV function returns
the net present value at time 0 for the set of cash payments c0,c1,
...,cn, with a rate r over
a specified base period of time. The argument freq>0
describes the number of payments that occur over the specified base
period of time.

$\begin{array}{c}NETPV(r,freq,{c}_{0},{c}_{1},\mathrm{.}\mathrm{.}\mathrm{.},{c}_{n})=\underset{i=0}{\overset{n}{\Sigma}}{c}_{i}{x}^{i}\hfill \end{array}$

$\begin{array}{c}x=\{\begin{array}{cc}\frac{1}{{(1+r)}^{(1/freq)}}\hfill & freq>0\hfill \\ {\epsilon}^{-r}\hfill & freq=0\hfill \end{array}\hfill \end{array}$

Missing values in the
payments are treated as 0 values. When freq>0,
the rate r is the effective
rate over the specified base period. To compute with a quarterly rate
(the base period is three months) of 4 percent with monthly cash payments,
set freq to 3 and set r to
.04.

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