| What the name means | "Present Value of annual cash flows that are annually specified that are assumed to take place at intervals over the year"
| | Syntax | NPVM ( NPVDate, DisAER, AnnualCashFlows, StartAnnDate, PmtsPerYear )
| | Description | Calculates the Net Present Value of a series of annual cashflows, taking into account that cash flows are dispersed throughout the year according to PmtsPerYear.
| | See also Excel functions | NPV (Related)
|
Defaults and Values The variable(s) of this function have certain defaults and/or switch values associated with them. Click here to see more. | Type of Value | Value | Description | Detail | | Example(s)
| PmtsPerYear | -1 | The usual case for financial functions in general. Payment at the end of the year.
| | | 4 | The usual case for property calculations - rent quarterly in advance.
| | | -4 | The usual case for loan interest, quarterly in arrears. |
FeaturesThis function has a few features that help explain its name. Click here to see more. | Feature | What it means | Explanation |
| Compatibility | Compatible with the Blib Library | |
Range Handling and ConstraintsThis function has range inputs that are subject to range handling procedures to help reduce input errors and increase flexibility and speed. Click here to see more. The variables affected are as follows (in order): | Variable | Type of Handling | Explanation | | AnnualCashFlows | Trailing Zero Size (one range) | If this range has trailing zeros, the range will be shortened to last non-zero element. So {0,20,0,30,0,0} would be shortened to {0,20,0,30}. |
General | | This function should have been named PVM< for consistency with the other DCF functions, but it clashed with the existing annuity function PVM | Whats good or unique about it | | With PmtsPerYear of 1 and an NPVDate equal to the StartAnnDate this gives the same results as Excels NPV function. This function however extends this, principally by allowing the specification of cash flows as occurring throughout the year (either months, quarters etc) and in in advance or arrears. | Key Points | StartAnnDate
Note in the PVA and PVE functions, StartAnnDate is the date of the first cashflow. In the fairly similar NPVM function, StartAnnDate is the start date of the first period, because NPVM deals with cash flows occurring over time rather than at a discrete point. |
Examples | - Preview of the NPVM example.
- The above spreadsheet can be accessed from the Quick Reference (on the Business Functions menu), on the Examples menu, or in the Business Functions\Component Examples directory
|
| 