From the course: Excel: Financial Functions in Depth

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XNPV: Net present value given irregular inputs

XNPV: Net present value given irregular inputs - Microsoft Excel Tutorial

From the course: Excel: Financial Functions in Depth

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XNPV: Net present value given irregular inputs

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- [Instructor] When we are using the NPV function, we are a little bit limited in the way that we can enter our cash flow values. Because of the way that the function is structured, each of the series of cash flows needs to be staged exactly 12 months apart from each other. Cash flow doesn't always work like that, often, we know exactly when the funds are going to be paid or received, and they're not always exactly 12 months apart. So this is where the XNPV function can be useful. So if we know exactly the date that the funds are going to go out or come in, then we can use this function to calculate it. So let's have a go at calculating it. Again, the rate here, the values are there, and these are the dates. And that will give us a slightly more accurate net present value result. Just bear in mind, though, that it is slightly different in the way that it is calculating, which can be a little bit confusing. So what the NPV function does is it discounts everything back to the 1st of…

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