R RSidhu Member Sep 21, 2015 #1 Hello I need to calculate NPV over a stream of cashflows that is quarterly and not annually. How would we change the NPV formula? by dividing the rate by 4? Will appreciate your guidance thanks
Hello I need to calculate NPV over a stream of cashflows that is quarterly and not annually. How would we change the NPV formula? by dividing the rate by 4? Will appreciate your guidance thanks
Hui Excel Ninja Staff member Sep 22, 2015 #2 If you use the NPV() function that is correct as NPV() assumes evenly spaced cashflows If you use the XNPV() function you use the Annual Rate as it calculates the appropriate values internally based on the supplied input dates
If you use the NPV() function that is correct as NPV() assumes evenly spaced cashflows If you use the XNPV() function you use the Annual Rate as it calculates the appropriate values internally based on the supplied input dates
R RSidhu Member Sep 22, 2015 #3 Hui, So are you saying I dont need to divide the rate by 4? See attached excel. I have calculated quarterly NPV by using 3 different options/formula. Could you please tell me which one is correct and why. Thank you so much!! Attachments Sample 2 Quarterly NPV.xlsx 9.1 KB · Views: 8
Hui, So are you saying I dont need to divide the rate by 4? See attached excel. I have calculated quarterly NPV by using 3 different options/formula. Could you please tell me which one is correct and why. Thank you so much!!
