> For the complete documentation index, see [llms.txt](https://docs.valq.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valq.com/model/formula-functions/finance-functions/npv.md).

# NPV

The NPV function returns the net present value of an investment based on a discount rate and a series of future payments (negative values) and income (positive values).

### Syntax

NPV (Rate, value1,...valueN?) - > Number

### Arguments

<table><thead><tr><th width="148.33333333333331">Arguments</th><th width="224">Datatype</th><th>Description </th></tr></thead><tbody><tr><td>Rate</td><td>Number</td><td>The rate of discount </td></tr><tr><td>value1</td><td>Number, Node reference</td><td>The node that contains the order of cash flows for which you want to calculate the NPV. This is a required argument.</td></tr><tr><td>valueN?</td><td>Number, Node reference</td><td>The additional nodes that contains the order of cash flows for which you want to calculate the NPV. This is an optional argument </td></tr></tbody></table>

### Example

Consider the below example of a project with an initial investment of $10,000 and cash inflows of $4,000 for the subsequent four years. Discount rate is 12%. The objective is to evaluate the project by calculating NPV.

<table><thead><tr><th width="133">Periods</th><th align="right">0</th><th align="right">1</th><th align="right">2</th><th align="right">3</th><th align="right">4</th></tr></thead><tbody><tr><td><mark style="color:purple;">Initial Investment</mark></td><td align="right">-10000</td><td align="right">-</td><td align="right">-</td><td align="right">-</td><td align="right">-</td></tr><tr><td><mark style="color:green;">Cash Inflows</mark></td><td align="right">-</td><td align="right">4000</td><td align="right">4000</td><td align="right">4000</td><td align="right">4000</td></tr></tbody></table>

To achieve this, the following formula should be written in the \[NPV] node:

<mark style="color:blue;">**`NPV`**</mark>**`(12% ,`**<mark style="color:green;">**`[Cash Inflows]`**</mark>**`.`**<mark style="color:blue;">**`ALL_PERIODS`**</mark>**`)+`**<mark style="color:purple;">**`[Initial Investment]`**</mark>

We are including .ALL\_PERIODS in the formula so that it takes the value of the entire year's cash inflow rather a single period.

### Result

| NPV | 2149.40 |
| --- | ------- |


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