Function VNA

Key Information:

The Excel NPV function allows you to calculate the net present value of an investment from a cash flow and a discount rate.

How does it work?

Purpose: The NPV function gives us the net present value by determining an interest rate and future cash flows.

Features: It is a financial function that allows us to know the current value of an investment and to compare it with the initial investment, analyzing whether it will be won or lost.

Syntax: =NPV(rate; value1, value2; …)

Arguments:

rate: Interest rate for a period.

value1: First value that represents future cash flows.

value2: Second value that represents future cash flows.