Net Present Value Question

  • Thread starter Thread starter Guest
  • Start date Start date
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Guest

I need to be able to determine what the net present value would be for a list
of months with varying dollar amounts (For example: Jan 120000, Feb 35000,
March 55000, etc). What would the values be worth today?
 
You didn't specify a rate so I'll assume 5%... You can do this in 2 ways,
first use NPV():

=NPV(0.05,120000,35000,55000)

Or you can choose to understand what the NPV() formula is doing by
calculating manually:

=120000/(1.05)+35000/(1.05^2)+55000/(1.05^3)
 
Thank you for your response! Very helpful.

David Billigmeier said:
You didn't specify a rate so I'll assume 5%... You can do this in 2 ways,
first use NPV():

=NPV(0.05,120000,35000,55000)

Or you can choose to understand what the NPV() formula is doing by
calculating manually:

=120000/(1.05)+35000/(1.05^2)+55000/(1.05^3)
Click to expand...
 
David Billigmeier said:
You didn't specify a rate so I'll assume 5%... You can do this in 2 ways,
first use NPV():

=NPV(0.05,120000,35000,55000)

Or you can choose to understand what the NPV() formula is doing by
calculating manually:

=120000/(1.05)+35000/(1.05^2)+55000/(1.05^3)
Click to expand...
 
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