asked on NPV assistance. Cash flows at end of period not beginning
Hello,
How would I calculate NPV (assume to use XNPV since have cash flows) for the set of cash flows in the excel file?
The odd thing is that the cash flows are at the end of the period.
I have provided a calculation but I am not sure if it is correct.
Please see attached file.
Any comments are welcome.
thank you
How would I calculate NPV (assume to use XNPV since have cash flows) for the set of cash flows in the excel file?
The odd thing is that the cash flows are at the end of the period.
I have provided a calculation but I am not sure if it is correct.
Please see attached file.
Any comments are welcome.
thank you
Microsoft ExcelMicrosoft Office
Last Comment
pdvsa
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I had only positive values in my Payments range, and probably should have put a minus sign either before PV or XNPV in my suggested formula. The minus sign on the result of the originally suggested formula didn't bother me because I understood what was being calculated--but it isn't correct.
If your data are similar to mine, Co A is the better investment.
If your data are similar to mine, Co A is the better investment.
ASKER
Hi, you didnt add the negative payments at the end of the year? They are the ones at the very bottom.
Did you mean to post a file? There wasn’t one in the question.
ASKER
My apologies... i thought I attached the file. Thank you for the help with little to work on. Sorry for any confusion. Arghh!
based on your formula I get:
Co A
(4,876.05)
Co B
(4,145.14)