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Excel NPV Function Assistance

I have a string of Cashflows that can vary based on "timeframe". I have put in a table that looks for the number of months and then matches the cashflows within that period to come up with an NPV.

Here's the problem. I can't get the NPV calculation correct. The Excel Help is not helpful in determining which flows to use. I have tried to create an "array" but I still do not think I have the NPV calculation correct.

Can you take a look?

Thank you in advance.

B.
NPVv2.xlsm

ASKER CERTIFIED SOLUTION

Rgonzo1971

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Bright01

ASKER

I think this works! However, my question would be why is NPV different for the same time period regardless of if you look at in monthly or yearly? Is it due to compounding?

Thanks so much for the insight on the Array formula!

B.

Bright01

ASKER

I spoke too soon. You see, if you change the time table (i.e. # of months), the NPV should also change given that the cashflows expand or contract based on the selection in the first cell for analysis period.

Could you take a look and comment?

Much thanks,

B.

Bright01

ASKER

In fact, if you change the Discount Rate or Risk premium, nothing changes either.

B.

Bright01

ASKER

Rgonzo,

Can you take a look? This model does not work when you change the parameters.

Thank you,

b.

Rgonzo1971

Could you send a file with the changed data?

Bright01

ASKER

Rgonzo,

Thank you for the response....... I've attached the file. Here's what I can see......my formula(s) in row 40/41 no longer work where it adjusts for the time placed in cell B3. This must be a really stupid error on my part but I've played with it and for some reason, I cannot get it to work.... If the formula worked, then I think your solution would probably work.

In the end, I'm trying to get NPV produced with the ability to modify the variables.

Much thanks for taking a second look.

B.
NPVv3.xlsm

Rgonzo1971

the file seems to change

are you sure calculation is automatic if not fire it with F9 to see changes

Bright01

ASKER

On my system, it doesn't change when you change the numbers/variables. It does change when you press F9. Is there a way to make this fire automatically? I've never seen a formula not "fire". The people who will be using this calculation will not understand how to "fire" the changes.

Thank you,

B.

Rgonzo1971

Goto
File / Options / Formulas / Calculation Options and check

Workbook calculation automatic

Regards

Bright01

ASKER

Great! Works! Thank you very much.......

B.