Skip to main content
Skip table of contents

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

JavaScript errors detected

Please note, these errors can depend on your browser setup.

If this problem persists, please contact our support.