Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate. Learn more
XNPV is a financial function in Google Sheets that calculates the net present value (NPV) of a series of cash flows occurring at irregular intervals.
The XNPV function takes three arguments: a discount rate, an array of cash flow amounts, and an array of corresponding dates for each cash flow.
The discount rate is the rate at which future cash flows are discounted to their present value. The cash flow amounts represent the cash flows associated with each date, and the cash flow dates represent the dates on which the cash flows occur.
The XNPV function calculates the sum of the present values of each cash flow, using the specified discount rate and the time elapsed between each cash flow and the initial cash flow.
The XNPV function is a useful tool for evaluating the profitability of an investment or project, as it helps to determine the net present value of future cash flows, adjusted for the time value of money.