Npv(

[DarkerLine]

I have tried to find out what npv( does. Here are my results:

1) the arguments are npv(integer, integer, list)
2) npv(x, y, list) is the same as y + npv(x,0,list)
3) npv(0, 0, list) is sum(list)
4) the result is always a rational number.
5) it involves 100, 101, 102, etc. somehow

Could someone please help me with this?

[sgm]

Go to Page 15

[DarkerLine]

I was actually wondering what the formula was for calculating it. I don't take any advanced economics class and don't understand that stuff.

[Arcane Wizard]

npv(interest,CF0,CFList,CFFreq)
interest = interest where current net value of all cashflows equals 0
CF0 = cash flow at time 0
CFList = list of cash flows after time = 0
CFFreq = occurance of same element of CFList, optional

Example:
CF0 = 1500
CFList = {2000,3000,2500}
CFFreq = {3,2,4} //2000 occurs 3 times, 3000 occurs twice, 2500 occurs 4 times -> effectively changes CFList to: {2000,2000,2000,3000,3000,2500,2500,2500,2500}

You input the interest rate, inital investment, and a list of cash flows (in=positive, out=negative) and it calculates the sum so you can see if it's a provitable investment.

npv(6,-2000,{1000,-2500,0,5000,3000})
returns: 2920,65

Maybe that helps a bit? I'll see if I can find out the actual calculation later, have to go now.