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Chapter 20. Building Discount Formulas > Net Present Value with Nonperiodic Cas...

Net Present Value with Nonperiodic Cash Flows

The examples you've seen so far have assumed that the cash flows were periodic, meaning that they occur with the same frequency throughout the term (such as yearly or monthly). In some investments, however, the cash flows occur sporadically. In this case, you can't use the NPV() function, which works only with periodic cash flows.

Happily, Excel's Analysis ToolPak offers the XNPV() function, which can handle nonperiodic cash flows:


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