NPV Function


NPV Function

Class

Microsoft.VisualBasic.Financial

Syntax

     Dim result As Double = NPV(rate, valueArray(  )) 


rate (required; Double)

The discount rate over the period, expressed as a decimal percent


valueArray( ) (required; array of Double)

An array of cash-flow values

Description

The NPV function calculates the net present value of an investment based on a series of periodic variable cash-flow events (payments and receipts) and a discount rate. The net present value is the value today of a series of future cash-flow events discounted at some rate back to the first day of the investment period.

Usage at a Glance

  • The discount rate is stated as a decimal percent. For example, 10% is stated as 0.1.

  • valueArray is a one-dimensional array that must contain at least one negative value (a payment) and one positive value (a receipt).

  • The NPV investment begins one period before the date of the first cash-flow value and ends with the last cash-flow value in the array.

  • NPV requires future cash flows. If the first cash-flow occurs at the beginning of the first period, the first value must be added to the value returned by NPV and must not be included in valueArray.

  • NPV is like the PV function, except that PV allows cash flows to begin either at the beginning or the end of a period and requires that cash flows be fixed throughout the investment.

See Also

FV Function, IPmt Function, NPer Function, Pmt Function, PPmt Function, PV Function, Rate Function




Visual Basic 2005(c) In a Nutshell
Visual Basic 2005 in a Nutshell (In a Nutshell (OReilly))
ISBN: 059610152X
EAN: 2147483647
Year: 2004
Pages: 712

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