Calculate net present value for a series of non-periodic cash flows. Excel: XNPV

Contents

Interface Function Documentation Page Comments

Interface

#include <codecogs/finance/accounting/xnpv.h>

using namespace Finance::Accounting;

double

xnpv (double rate, double values[], int dates[], int nV) Calculate net present value for a series of non-periodic cash flows. Excel: XNPV

Function Documentation

Calculate the net present value for a schedule of cash flows which are not necessarily periodic. values contains the series of cash flows made on the specific dates. Values which are a cost, (or paymemt) should be entered as negative values.

The following equation is used:

Where: Pa is the payment at point a . d0 is the date of the first payment.

Example 1:

Consider an investment that requires a £10,000 cash payment on January 1, 1998, and returns: £2,750 on March 1, 1998; £4,250 on October 30, 1998; £3,250 on February 15, 1999; and £2,750 on April 1, 1999. Assume that the cash flows are discounted at 9 percent. The net present value is:

#include <iostream>
#include <codecogs/finance/accounting/xnpv.h>
 
int main(int argc, char *argv[])
{
  double pmts[]={-10000, 2750, 4250, 3250, 2750};
  int dates[]={34334,34393,34636,34744,34789};
 
  std::cout<<"Net present value: ";
  std::cout<<Finance::Accounting::xnpv(0.09, pmts, dates, 5);
  std::cout<<std::endl;
 
  return 0;
}

Output:

Net present value: 2089.5

use a rate of 0.09 .

payments on specific dates.

are made.

Parameters:

rate	The discount rate to apply to the cash flows. For 9%
values	An array of cash flows that correspond to a series of
dates	An array of dates on which the corresponding payments

Returns:

The net present value of the investment.

Authors:

James Warren (July 2005)