Join Curt Frye for an in-depth discussion in this video XNPV: Calculating net present value given irregular inputs, part of Excel 2010: Financial Functions in Depth.
- View Offline
- Exercise Files
In the previous movie I showed you how to use the NPV function to find the net…present value of an investment.…That function assumes that all of the cash flows happen at regular intervals,…every month, every two months, every year, and so on.…If you have a series of cash flows that occur at irregular intervals, you need to…use the XNPV function to find the net present value.…So for the XNPV function, you have two sets of arguments. The first is the…discount rate and the discount rate is the return that you can expect on a…guaranteed investment.…
So for example, if you were able to invest in U.S. Treasury bill with a 5% rate,…then that would serve as the discount rate.…Next you need the values anddates.…So the first of the values and those are simply the cash flows. Negative…cash flows in this number format are shown in parentheses so we have a…buy-in of $108,000.…And the next each one of these cash flows you have the date.…So we have May 1, 2011, June 1, 2011, August 1, 2011.…
So you see that those dates occur at irregular intervals and again if you're…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
Excel 2010: Data Validation in Depthwith Dennis Taylor59m 45s Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.