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I am not an accountant hence my language maynot sound very "fianacial" but i
do have a question I understand that NPV funciton in excel calculates the results annually or for 12 months. How can get the NPV value for each month? Does that make sense? Thanks |
#2
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In fact, like almost all financial functions, NPV works with a *periodic*
interest rate. In other words, NPV doesn't care what the period is (it could be annually, quarterly, monthly, etc.). NPV requires that the rate be for the same period as the amounts. If you give NPV a series of monthly amounts, it assumes your rate is a monthly rate. It's your job to ensure the amounts and rate are for the same period. Once done, Excel will calculate NPV properly. -- Regards, Fred Please reply to newsgroup, not e-mail "JP SIngh" wrote in message ... I am not an accountant hence my language maynot sound very "fianacial" but i do have a question I understand that NPV funciton in excel calculates the results annually or for 12 months. How can get the NPV value for each month? Does that make sense? Thanks |
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