NPV

Basic Overview

Description	The Net Present Value (NPV) function calculates the net present value of an investment by using a discount rate, a series of future payments and an income.
Signature	NPV(Rate, Cashflow [,Level])
Parameters	Rate → The rate of the discount over the time of the period Cashflow → Series of payments or incomes (negative values represents outgoing payments and positive values represent incoming payments) Level → [Optional] The period of time or a sequence over which the calculation is going to be made. If the level is not provided, the lowest time level from cashflow is selected
Notes	The 'Cashflow' node is the leading input node. A leading input node is a function argument, for which we assume the levels to be correct Rate values are percentages and must be entered/returned as decimals. e.g. 10% → 0.1 If a level is entered, it should be a level of the cashflow node The levels from the rate input node need to be available in the cashflow input node Any level that is in the same dimension as the selected level from the cashflow node, cannot be available in the rate input node. That also counts for all linked levels in this dimension
Limitations	The cashflow data cannot have missing data

Example:

Cashflow:

Year	Region	Measure
2021	Asia	+500
2022	Asia	-100
2023	Asia	+200
2021	Europe	-100
2022	Europe	+400
2023	Europe	+500

Rate:

Region	Measure
Asia	0.05
Europe	0.1

NPV Result:

With the given cashflow and rate nodes, using the function NPV('Rate', ‘Cashflow') (or NPV('Rate', ‘Cashflow', “Year“)) would give the following result. In this example, the NPV has been aggregated over the years.

Region	NPV
Asia	558,26
Europe	615,33