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Excel NPV

I have been asked to calculate a mid-year NPV for my project. Apparently excel only calculates NPV at year end with the NPV formula. How can I calculate a mid-year NPV in excel?

Thanks

DC
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Dave
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Two ways

(1) Use XNPV which allows a date range

You need to enable the Analysis Toolpak add-in to use this formula

From the menu
Tools - Addins- Analysis Toolpak

(2) Derive the NPV manually, cashflow by cashflow

ie if the discounting is at month 6, month 18, month 30 etc then at a 10% disocount rate the respective discount factors are 1/(1+10%)^(6/12) = 0.95 etc

Discounted Cashflow 1 = Cashflow 1 * 0.95
Discounted Cashflow 2 = Cashflow 2 * 0.87
Discounted Cashflow 2 = Cashflow 3 * 0.79

Are you familiar with NPV? Let me know if I need to explain more

Cheers

Dave
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jackdog

ASKER

The XNPV looks complex, I'd prefer not to go down that path.

So if I discount each annual cashflow by the number of half years from today and sum the results then I have a mid-point NPV?

Thanks

DC










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Dave
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