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Niek Otten
 
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Default NPV - 4 values over 60yrs

If you post your inputs, results and expected results we could check any
advice we'd like to give

--
Kind regards,

Niek Otten

"Greg114" wrote in message
...
Hello,

I am trying to use the NPV function to look at 4 cash flows over a 60yr
time
frame. There is an intial immediate cost, than cash flows at YR20, YR40
and
YR60. I am using a yearly discount rate of 8%. I was using the following
formula - =NPV(.08*20, YR20, YR40, YR60) + Intial Cash Flow, but it
didn't
match up when I compared it to performing the NPV at each point in time
and
adding it up - (=Initial Cash flow + (YR20 cash flow/(1+.08)^20 + ...).
But
the NPV formula does come close when I add a 0 for Value1 - =NPV(.08*20,
0,
YR20, YR40, YR60) +Intial cash flow.
Am I using an incorrect discount rate in the formula or using the
arguments
incorrectly? I am just not sure how the 0 in Value 1 gets me close to the
actual NPV value.
Thank you for your assistance in advance.
-G