NPV stands for Net Present Value, it is an important term in finance as it used to determine the value of money or investment based on a series of cashflows and specified discount rate. Excel provides a functions which aids easy calculation of the Net Present value of money or investment using the NPV formula. The syntax forbthe NPV formula is :
=NPV(rate,value 1, [value 2],...)
This formular requires only tow key parameters ; the discount rate, which comes first and the cashflows, which is designated in the syntax as values ; the cashflows is usually placed in a range of cells in excel and the cell range is inputed in the formular. Hence, the number of payments and future value aren't part of the NPV syntax.
