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Navigation:  Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== NPV (net present value) ====== Previous pageReturn to chapter overviewNext page


NPV Computes net present value of an investment.
investment A numeric constant or variable containing the initial cost of the investment (a negative number).
cashflows[] A single dimensioned DECIMAL array containing the amounts of money paid out and received during discrete accounting periods.
periods[] A single dimensioned DECIMAL array containing period numbers identifying the discrete accounting periods in which cash flows occurred.
Rate A numeric constant or variable containing the desired periodic rate of return.

NPV determines the viability of an investment proposal by calculating the present value of future returns, discounted at the marginal cost of capital minus the cost of the investment (investment). The cashflows parameter is an array of money paid out and received during the course of the investment. The periods parameter is an array which contains the period number in which a corresponding cash flow occurred. The desired periodic rate of return (rate) for the investment is also specified. Investment should contain a negative number (a cost).

Periodic rate may be calculated as follows:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100)


Cashflows and periods MUST both be DECIMAL arrays of single dimension and equal size. The last element in the periods array MUST contain a zero to terminate the NPV analysis.

Return Data Type:     DECIMAL

Internal Formulas:



CashFlows           DECIMAL(18,2),DIM(1000)

CashFlowPeriods     DECIMAL(4),DIM(1000)

InvestmentAmount    DECIMAL(18,2)

DesiredInterestRate DECIMAL(31,15)

NetValue            DECIMAL(18,2)

InvestmentTransactions FILE,DRIVER('TOPSPEED'),|



Notes             MEMO(1024)

Record            RECORD,PRE()

Id                 DECIMAL(8)

PeriodNumber       DECIMAL(8)

Date               ULONG

Type               STRING(20)

Amount             DECIMAL(16,2)




 CLEAR(CashFlows)                 !initialize queue

 CLEAR(CashFlowPeriods)           !initialize queue


 CLEAR(TRANSACTION:RECORD)        !initialize record buffer

 DesiredInterestRate = INV:NominalReturnRate / (100 * INV:PeriodsPerYear)

 transcnt# = 0

 TRANSACTION:Id = INV:Id          !prime record buffer

 TRANSACTION:PeriodNumber = 0

 SET(TRANSACTION:KeyIdPeriodNumber,TRANSACTION:KeyIdPeriodNumber) !position file

 LOOP                                   !loop for all transactions

  NEXT(InvestmentTransactions)          !read next record

  IF ERRORCODE() OR TRANSACTION:Id NOT = INV:Id  !if no more transactions

   BREAK                                         !break from loop

  ELSE                                           !else process transaction

   transcnt# += 1

   CashFlows[transcnt#] = TRANSACTION:Amount

   CashFlowPeriods[transcnt#] = TRANSACTION:PeriodNumber

  END                       !endelse process transaction

 END                        !endloop all transactions

 NetValue = NPV(InvestmentAmount,CashFlows,CashFlowPeriods,DesiredInterestRate)

npv_net_present_value_.htm.txt · Last modified: 2021/04/15 15:57 by