Excel has a Net Present Value (NPV) Function to analyse multiple cash flows over time. The NPV Function assumes the cash flows are at regular intervals. To handle irregular intervals you can use the XNPV Function to specify cash flows and their corresponding dates.
The syntax for the two NPV Functions are:
=NPV(rate, values)
=XNPV(rate, values, dates)
Function components
- rate – discount rate for one period for NPV and the annual discount rate for XNPV
- values – range with cash flows
- dates – range with dates
For further information on these functions, check the help files in Microsoft Excel