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Calculate net present value for a series of non-periodic cash flows. <span align="right" style="background-color:99FF99"><strong>Excel: XNPV</strong></span>

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Interface

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

using namespace Finance::Accounting;

double xnpv(double rate, double values[], int dates[], int nV)

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:

$XNPV\ =\ \sum_{a=0}^{N-1}\ \frac{P_a} {(1.0+rate)^{\frac{(d_a-d_0)}{365.0}}}$

(1)

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

Parameters

rate

The discount rate to apply to the cash flows. For 9%

Blank

use a rate of 0.09 .

Parameters

values

An array of cash flows that correspond to a series of

Blank

payments on specific dates.

Parameters

dates

An array of dates on which the corresponding payments

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are made.

Returns

The net present value of the investment.